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2024/25
Annual Report and Accounts
Who we are
Kingfisher is an international home
improvement company. We offer
home improvement products and
services to consumers and trade
professionals through our stores
ande-commerce channels.
Our purpose
Better Homes. Better Lives.
For Everyone. At Kingfisher,
we believe a better world starts
with better homes and we strive
to help make that happen.
This has been another year of focused
delivery of our strategy against a challenging
macroeconomic and consumer backdrop.
Kingfisher is in its best operational shape for
years, and we remain confident about our
growthopportunities.”
Thierry Garnier
Chief Executive Officer
It is an honour and privilege to chair Kingfisher.
This is a fantastic business with a clear purpose,
passionate colleagues, and compelling growth
opportunities to create sustainable value for all
our stakeholders.”
Claudia Arney
Chair of the Board
Contents
Strategic Report
2
Kingfisher at a glance
3
Financial highlights
4
Chief Executive Officer’s statement
6
Our strategy
8
Performance against priorities
12
Key performance indicators
14
Business model
16
People and culture
19
Section 172 statement
21
Our stakeholders at a glance
22
Stakeholder engagement
25
Non-financial and sustainability information statement
26
Responsible Business
30
Our response to the Task Force on
Climate-related Financial Disclosures
47
Financial review
56
Trading review by division
60
Risks
66
Viability statement
68
Going concern
Governance
69
Chair’s statement
70
Corporate governance
72
Board of Directors
74
Board composition
75
Board activities
76
Board effectiveness
77
Nomination Committee report
81
Responsible Business Committee report
83
Audit Committee report
88
Directors’ remuneration report
120
Directors’ report
123
Statement of directors’ responsibilities
Financial Statements
124
Independent auditors’ report
135
Consolidated income statement
136
Consolidated statement of comprehensiveincome
137
Consolidated statement of changes in equity
138
Consolidated balance sheet
139
Consolidated cash flow statement
140
Notes to the consolidated financialstatements
190
Company balance sheet
191
Company statement of changes in equity
192
Notes to the Company financial statements
202
Group five year financial summary
Other Information
203
Shareholder information
205
Glossary
1Kingfisher 2024/25 Annual Report and Accounts
Kingfisher at a glance
All figures on this page relate to the year ended 31 January 2025.
1. B&Q 310, Screwfix 952.
2. Our banner in Turkey, Koçtaş, is operated as a 50% joint venture. Store figure as of 31 January 2025.
3. Castorama 94, Brico Dépôt 126, Screwfix 30.
4. Sale expected to complete during first half of FY 25/26, as announced on 18 December 2024.
5. Turkey joint venture included.
6. Total, not full-time equivalent.
Our strategic principles
Kingfisher operates in eight countries across Europe under banners including B&Q, Castorama, Brico Dépôt,
Screwfix, TradePoint and Koçtaş.
Where we operate
Kingfisher banners are not the same.
This is a strength.
We help ‘power’ our banners as a Group.
We have a clear vision to build customer propositions
for the future.
We are human, agile and lean.
1,262
1
UK & Ireland
Over 76,000
5, 6
colleagues
Over 1,900
stores
Over 3,700
suppliers across 70 countries
31
4
Romania
262
2
Turkey
250
3
France
28
Spain
107
Poland
3
Portugal
Our Responsible Business website:
kingfisher.com/responsible-business
Our corporate website:
kingfisher.com
Other Information
2 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
1. Variance in constant currency.
2. Alternative Performance Measure (APM). See the Glossary on pages 205 to 207 for definitions and reconciliations of APMs.
3. The Board has proposed a final dividend per share of 8.60p (FY 23/24: 8.60p), resulting in a proposed total dividend per share of 12.40p in respect of FY 24/25
(FY 23/24: 12.40p). The final dividend is subject to the approval of shareholders at the Annual General Meeting on 23 June 2025.
Evaluation of our key performance indicators against our strategy can be found on pages 12 and 13 and pages 47 to 55.
Financial highlights
Total dividend
3
12.40p
2023/24: 12.40p
Net debt
2
to Adjusted EBITDA
2
1.6x
2023/24: 1.6x
Free cash flow
2
£511m
2023/24: £514m
Net debt
2
£(2,015)m
2023/24: £(2,116)m
Net cash flows from
operating activities
£1,302m
2023/24: £1,321m
Retail profit
2
/margin
2
£696m
2023/24: £749m
5.4%
(30)bps
1
2023/24: 5.8%; (130)bps
Gross profit
2
/margin
1, 2
£4,763m
2023/24: £4,776m
37.3%
50bps
2023/24: 36.8%; 10bps
Sales
£12,784m
2023/24: £12,980m
(1.7)%
1
/(1.5)%
Like-for-like²/reported
2023/24: (3.1)%
1
/2023/24: (0.6)%
Statutory profit – pre-tax
andpost-tax
Pre-tax
£307m
2023/24: £475m
Post-tax
£185m
2023/24: £345m
Basic earnings per share (EPS)
– adjusted and statutory
Adjusted
2
20.7p
2023/24: 21.9p
Statutory
10.1p
2023/24: 18.2p
Adjusted pre-tax profit
2
£528m
2023/24: £568m
For the year ended 31 January 2025
3Kingfisher 2024/25 Annual Report and Accounts
This has been another year of strong strategic delivery against
a challenging macroeconomic and consumer backdrop. The
strong progress we have made against our objectives is credit
to our teams, and I would like to thank all our colleagues across
the Group for their efforts and commitment to delivering for
our customers.
Business performance
From a financial perspective, we delivered profit and free cash
flow for the year in line with or ahead of our guidance. Total sales
were down 0.8% on a constant currency basis to £12,784m,
adjusted profit before tax was down 7% to £528m and we
delivered strong free cash flow of £511m. Importantly, for the
first time in over six years, we grew our market share at the
same time in all our key regions.
In the UK & Ireland, we saw like-for-like (LFL) sales growth
of 0.2%, with market share gains at B&Q supported by strong
e-commerce and TradePoint sales, and market share gains
and a positive LFL performance at Screwfix. In France, a 6.2%
reduction in LFL sales reflected the subdued consumer backdrop,
although both Castorama and Brico Dépôt performed ahead of
the market. In Poland, LFL sales were broadly flat (-0.1%), which
was ahead of the market, supported by a stable consumer
environment and strong trade customer initiatives.
Looking across our categories, our core business (67% of sales)
showed continued resilience, with an improving trend through
the year, driven by repair, maintenance and renovation activity
on existing homes. Big ticket (15% of sales) reflected weaker
trends across the market, but there were encouraging trends
in Q4. Seasonal (18% of sales) was impacted by unfavourable
weather, particularly in Q2.
Strategic progress
We made rapid progress in the year against our strategic
priorities, with a particular focus on growing our trade business
and accelerating our e-commerce capabilities. Our Group
strategy in these areas has been applied successfully in our UK
banners, and we are replicating this success in other markets,
with positive results.
Developing our trade business
The development of our trade customer proposition across our
markets is progressing at pace. Trade customer sales excluding
Screwfix were up 53% year-on-year, representing 17.9% of
Group sales in January, and up 4.9 ppts since the start of
the year.
We now have dedicated trade loyalty programmes in place
across our markets, with memberships growing 30% across
the year. We have also added further trade-specific ranges to
strengthen our product offer, including through own exclusive
brands (OEB).
TradePoint at B&Q continues to go from strength to strength,
with sales up 6.4% to £887m, now representing 23.4% of B&Q’s
sales (up 1.6 ppts). This has been supported by the introduction
of dedicated ‘sales partners’ in 44 stores, to strengthen
relationships with key customers and grow our share of their
spending. Stores with sales partners have seen a c. 5% uplift
in trade customer sales compared to stores without. TradePoint
also launched its first mobile app in October 2024, which has
already proved popular with customers.
Our trade propositions in France and Poland are also developing
rapidly. Brico Dépôt France now has trade service desks and
colleagues in all stores and Castorama France is rolling out
its dedicated trade zones. Castorama Poland expanded its
‘CastoPro’ zones to 12 stores, providing dedicated spaces to
serve trade customers and bringing together key trade ‘grab and
go’ lines. The business also successfully launched its trade app in
December and created 54 dedicated trade sales partner roles.
In 2025/26, our focus will be on continuing to recruit and train
trade sales partners in all our markets, accelerating the roll-out
of our trade propositions at Castorama France and Brico Dépôt
Iberia, expanding ‘CastoPro’ zones in Poland, and continuing to
enhance our trade-specific product ranges and services
across all markets.
Our longer-term ambitions in trade are to reach more than
£1 billion of sales at TradePoint in the UK & Ireland, double trade
sales penetration in France (versus FY 24/25), and achieve trade
sales penetration of over 30% in Poland.
Accelerating e-commerce through speed and choice
Our e-commerce sales grew 8.3% on a constant currency basis
year-on-year, taking our e-commerce sales penetration to 19%,
up 1.6 ppts on last year (and up 11.4 ppts versus FY 19/20). This was
driven primarily by the continued success of our marketplace at
B&Q, as well as strong online sales growth at Screwfix. Our total
Group-wide marketplace Gross Merchandise Value (GMV)
reached £327m, up 62% year-on-year.
Our marketplace proposition is now live in all our key markets,
after we opened marketplaces at Castorama France in Q1 and at
Castorama Poland in Q4. We have seen strong momentum. In
January 2025, B&Q’s marketplace sales represented 43% of its
total e-commerce sales, with over 2.1 million products now
available to customers. Brico Dépôt Iberia’s marketplace
reached 33% e-commerce sales penetration by the end of the
year, with Castorama France at 14%. Castorama Poland’s new
marketplace is also seeing encouraging early results.
Our investment in e-commerce across our banners extends
to our app capabilities. App sales represented 36% of total
e-commerce sales (FY 23/24: 26%), growing by 41% year-on-
year. This was supported by the launch of our redesigned B&Q
app and our new TradePoint app. Monthly active app users
across the Group increased by 18% year-on-year on average.
Our focus on speed is also paying off, as customers take
advantage of our convenient range of fulfilment options, which
harness the strength of our store networks. Home delivery sales
increased 15% year-on-year, while click & collect orders rose 5%,
accounting for 65% of total e-commerce sales and 88% of
first-party e-commerce orders.
Sales via Screwfix Sprint, the banner’s rapid one-hour delivery
service, grew by over 40% year-on-year, and the service now
covers c. 60% of the UK population. Screwfix and B&Q also
partnered with Deliveroo in the year to offer 30-minute home
delivery services on a limited range of products from selected
stores, with encouraging customer uptake.
Chief Executive Officer’s statement
Other Information
4 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
At the same time, our retail media offering is building momentum,
with capabilities now live in the UK, France and Poland. More than
500 vendors are now engaging in over 2,400 live campaigns on
a monthly basis (up 167% year-on-year), with very high returns
on advertising spend, at B&Q, Castorama France and Brico
Dépôt France.
In 2025/26, our focus will be on accelerating the onboarding of
cross-border vendors to all our marketplaces. We will also start
click & collect for marketplace orders in our stores at B&Q, and
develop new marketplace functionalities such as complex
promotions. In retail media, we will launch our offer at Screwfix
during the year, and test in-store campaigns across the Group.
Our longer-term ambitions remain: for e-commerce to reach
30% of our sales, one third of which from marketplace; and for
retail media income to reach up to 3% of the Group’s total
e-commerce sales.
Delivering on our plan to improve performance at
Castorama France
Another important priority for us has been executing our plan to
improve the performance and profitability of Castorama France.
We are accelerating progress with the restructuring and
modernisation of Castorama’s lowest performing stores, with
work ongoing or completed on a total of 13 stores in the year.
We completed four rightsizings, with previous rightsizings
delivering low, double-digit percentage sales density improvements
on average versus FY 19/20, significantly higher than the
Castorama France average. The other projects comprised six
store modernisations, including one comprehensive refit, two
franchise tests, and the transfer of one low-performing
Castorama store to Brico Dépôt.
In 2025/26, the business is planning to begin work on 11 further
stores across these four avenues.
Responsible Business
Our commitment to leading the industry as a responsible
business remains.
We have reduced the carbon footprint from our own operations
by 66.0% since FY 16/17, exceeding our Scope 1 and 2 target
of 37.8% reduction by FY 25/26. We have also reduced our
absolute Scope 3 emissions from supply chain and product
use by 30.4%, ensuring we are on track to deliver our FY 25/26
target, and announced new vendor decarbonisation targets to
further reduce Scope 3 emissions.
Scan the QR code or visit
www.kingfisher.com/fullyearresults
for more information.
Meanwhile, we reached 53% of Group sales (FY 23/24: 49%)
and 63% of OEB sales (FY 23/24: 60%) from our Sustainable
Home Products (SHP). We rolled out our Green Star marker
to c. 10,000 products across the Group to date, making it
easier for customers to identify products with reduced
environmental impact.
Finally, and importantly, we remain focused on ensuring our
colleagues are engaged and able to realise their full potential.
Our Employee Net Promoter Score of 59 improved by two
points year-on-year, maintaining our position in the top 5%
of worldwide retailers.
Looking ahead
Looking to the year ahead, we know that recent government
budgets in the UK and France have raised costs for retailers
and impacted consumer sentiment in the near term. With this in
mind, we remain focused on what is in our control. This includes
progressing our strategic objectives at pace to deliver further
market share gains – by further growing our trade customer and
e-commerce sales, and delivering on our operational objectives
in France.
We are also focused on continuing to manage our gross margin,
costs and cash effectively. We are targeting further structural
cost and inventory reductions this year, to offset the impact of
inflation (including higher pay rates), higher UK employer national
insurance contributions and similar taxes in France, and the
impact of the new packaging fees regulations in the UK.
I would like to warmly thank colleagues once again for all their
hard work and dedication this year. Despite external headwinds,
Kingfisher is in its best operational shape for years, and we
remain confident about our growth opportunities.
Thierry Garnier
Chief Executive Officer
24 March 2025
5Kingfisher 2024/25 Annual Report and Accounts
Better Homes. Better Lives. For Everyone. At Kingfisher, we believe a better world starts with better homes and we strive
to help make that happen.
Put simply, our strategic plan – ‘Powered by Kingfisher’ – aimsto maximise the benefits of combining our distinct banners with the
scale, strength and expertise of the Kingfisher Group.
The differentiation of our banners across trade (Screwfix and TradePoint), discounters (Brico Dépôt France and BricoDépôt Iberia),
andmore general DIY needs (B&Q; Castorama France; Castorama Poland; Brico Dépôt Romania and Koçtaş) is a unique strength.
Our strategy
Powered by Kingfisher’s enhanced technology
platforms and agile operating model, our banners
are leveraging data and artificial intelligence (AI) to
build customer-centric tools and solutions, thereby
supporting better commercial decision-making and
higher productivity, and unlocking significant new
sources of sales, profit and cash.
Build a data-led
customer experience
Our banners occupy number one and two positions
in our key markets. These banners address a diverse
range of customer needs, each operating different
models tailored to these needs, with clear positionings
and plans. Our goal is to grow by building on our different
formats, leveraging the power of Kingfisher.
We are committed to offering our customers ‘speed’
– faster fulfilment of orders through leveraging our
store estate – and ‘choice’ – broader product choice,
including via our e-commerce marketplace propositions.
With over one billion customer visits each year across
our e-commerce touchpoints, we are also offering
suppliers and vendors the opportunity to merchandise
their products through retail media.
Grow by building on our
different banners
Accelerate e-commerce through
speed and choice
1
3
4
2
Develop our
trade business
Trade customers tend to visit our stores more
frequently and spend more than the average retail
customer. We are focused on developing our trade
customer proposition across our banners through the
further roll-out of trade counters, dedicated colleagues,
specialised product ranges, new services and loyalty
programmes, and an enhanced omni-channel
customer experience.
Other Information
6 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Compact stores play an increasingly crucial role in
addressing the consumer need for convenience, and
enable us to further meet demand for fast fulfilment,
whether through click & collect or delivery. Through
compact store expansion, our ambition is to grow
market share, optimise our overall store footprint,
and grow sales densities and store profitability.
Roll out
compact store formats
We are committed to leading our industry in responsible
business practices and energy efficiency. Building on
our strong environmental, social and governance (ESG)
credentials, our ‘Powered by Kingfisher’ strategy sets
out to maximise our positive impact on the lives of
our customers, colleagues, communities, and the planet.
We have adopted a culture of speed and agility,
given the rapidly changing environment in which
we do business. We continue to focus on becoming
a leaner and more productive business, while aiming
to structurally reduce our cost base and lower our
same-store net inventory.
Lead the industry in Responsible Business
and energy efficiency
Agile
and lean
5
7
8
6
Equally, Kingfisher’s scale and resources are a critical source of competitive advantage for our banners, providing product
development and supply (through our industry-leading own exclusive brands), access to leading-edge technology, digital and data
capabilities, as well as international support, sourcingand buying scale.
We are continuing to invest for growth in multiple areas ofthebusiness, underscoring our confidence in the medium to-longer term
outlook for home improvement growth in our markets.
Our OEB product development is a significant source of
value and competitive advantage, enabling differentiation
from the rest of the market. OEB products also carry a
higher gross margin (on average) than branded products.
We aim to grow our OEB sales further as we continue to
provide simple and innovative solutions to our customers
at affordable prices, while also focusing on reducing
environmental impacts.
Differentiate and win through
own exclusive brands (OEB)
7Kingfisher 2024/25 Annual Report and Accounts
Performance against priorities
Strategic priorities Key progress Proof points for FY 24/25 Forward focus for FY 25/26
Grow by building on
our different banners
— Further expanded Screwfix in the UK, Ireland and France.
— Acquired eight former Homebase stores to reopen as B&Q in the UK & Ireland.
— Expanded TradePoint at B&Q.
— Continued expansion of Castorama Poland.
30
net new Screwfix stores
in the UK & Ireland
10
Screwfix France stores
opened – total of 30
70%
of B&Q stores have a
TradePoint (217 counters)
5
Castorama Poland stores
opened – total of 107
— Complete conversion of eight acquired Homebase stores to B&Q.
— Test TradePoint format in smaller B&Q stores.
— Open up to 35 Screwfix stores in the UK & Ireland, including 30
Screwfix ‘City’ stores.
— Open up to five Screwfix stores in France.
— Open two Castorama Poland stores.
Longer-term ambitions:
Net space growth to drive an uplift in sales of c. +1.5% to +2.5% per
annum, largely driven by: (1) over 1,000 Screwfix stores in the UK &
Ireland, including up to 100 Screwfix ‘City’ stores, and (2) up to 75 new
Castorama Poland stores. We also see the potential for more than 600
Screwfix stores in France, over time.
Develop our
trade business
— Loyalty programmes for trade customers now active in all markets.
— Added further trade-specific ranges.
— Launched TradePoint’s first app.
— Castorama France started trialling dedicated trade zones in eight stores.
— Brico Dépôt France and Castorama Poland rolled out dedicated trade service desks and
launched dedicated apps.
£1.5bn
total trade customer sales
(excluding Screwfix),
up 53% year-on-year
15.0%
trade sales penetration
(excluding Screwfix)
6.4%
increase in TradePoint sales,
to £887m – 23.4% of B&Q sales
30%
increase in loyalty programme
memberships
— Continue to recruit and train trade sales partners in all markets.
— Accelerate roll-out of trade propositions at Castorama France and
Brico Dépôt Iberia.
— Expand ‘CastoPro’ zones in Poland to an additional 15 stores.
— Continue to enhance trade-specific product ranges and services
in all markets.
Longer-term ambitions:
Reach more than £1.0 billion sales at TradePoint in the UK & Ireland;
double trade sales penetration in France (versus FY 24/25: 4.8%); and
achieve trade sales penetration of over 30% in Poland (FY 24/25: 18.3%).
Accelerate
e-commerce through
speed and choice
— Continued strong growth of e-commerce penetration.
— Continued success of marketplaces, with propositions now live in the UK, France, Poland
and Iberia.
— Retail media capabilities now live in the UK, France and Poland.
— Screwfix Sprint in the UK is now available in over 485 stores, covering c. 60% of UK population.
— Redesigned B&Q app and new TradePoint app launched.
— Screwfix and B&Q partnered with Deliveroo, with encouraging customer uptake.
19.0%
e-commerce sales penetration
(up 1.6 ppts)
£327m
marketplace GMV
(up 62% year-on-year)
40%
increase in Screwfix Sprint sales
43%
of e-commerce sales from
B&Q’s marketplace, with
c. 2.1m SKUs live
— Accelerate on-boarding of cross-border vendors to
our marketplaces.
— Test click & collect in stores for marketplace orders, initially at B&Q.
— Develop new marketplace functionalities such as complex
promotions.
— Launch retail media at Screwfix.
— Test in-store retail media campaigns.
Longer-term ambitions:
E-commerce to reach 30% sales penetration, one third of which from
marketplace. Retail media income to reach up to 3% of the Group’s total
e-commerce sales.
Build a data-led
customerexperience
— Good results from implementing AI-powered product recommendation and personalisation
engines across all markets (except Iberia).
— Castorama France expanded visibility of Hello Casto AI virtual assistant.
— Developed innovative visual search technology to help customers find the right products to
complete their jobs. The technology is being rolled out at Screwfix and tested at B&Q.
— Implemented in-house supply chain visibility tool in all banners, helping to reduce inventory levels.
— B&Q leveraging AI-driven promotions, markdowns and clearance solutions, resulting in
improved sales, gross margin % and sell-through of stock.
£100m
sales delivered from
AI-powered engines
c. 10%
of B&Q’s e-commerce
sales driven by product
recommendations
100%
increase in web sales from
recommendation engines vs
legacy third-party solutions
c. 500k
interactions with Hello Casto
since launch in 2023
— Launch virtual AI assistant tool at other banners.
— Test visual search technology at B&Q and Castorama France.
— Roll-out at Castorama France and start to implement AI-driven
promotions, markdowns and clearance solutions at Castorama
Poland and Brico Dépôt France.
— Extend SVT data-sharing to additional vendors across all markets.
Other Information
8 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Strategic priorities Key progress Proof points for FY 24/25 Forward focus for FY 25/26
Grow by building on
our different banners
— Further expanded Screwfix in the UK, Ireland and France.
— Acquired eight former Homebase stores to reopen as B&Q in the UK & Ireland.
— Expanded TradePoint at B&Q.
— Continued expansion of Castorama Poland.
30
net new Screwfix stores
in the UK & Ireland
10
Screwfix France stores
opened – total of 30
70%
of B&Q stores have a
TradePoint (217 counters)
5
Castorama Poland stores
opened – total of 107
— Complete conversion of eight acquired Homebase stores to B&Q.
— Test TradePoint format in smaller B&Q stores.
— Open up to 35 Screwfix stores in the UK & Ireland, including 30
Screwfix ‘City’ stores.
— Open up to five Screwfix stores in France.
— Open two Castorama Poland stores.
Longer-term ambitions:
Net space growth to drive an uplift in sales of c. +1.5% to +2.5% per
annum, largely driven by: (1) over 1,000 Screwfix stores in the UK &
Ireland, including up to 100 Screwfix ‘City’ stores, and (2) up to 75 new
Castorama Poland stores. We also see the potential for more than 600
Screwfix stores in France, over time.
Develop our
trade business
— Loyalty programmes for trade customers now active in all markets.
— Added further trade-specific ranges.
— Launched TradePoint’s first app.
— Castorama France started trialling dedicated trade zones in eight stores.
— Brico Dépôt France and Castorama Poland rolled out dedicated trade service desks and
launched dedicated apps.
£1.5bn
total trade customer sales
(excluding Screwfix),
up 53% year-on-year
15.0%
trade sales penetration
(excluding Screwfix)
6.4%
increase in TradePoint sales,
to £887m – 23.4% of B&Q sales
30%
increase in loyalty programme
memberships
— Continue to recruit and train trade sales partners in all markets.
— Accelerate roll-out of trade propositions at Castorama France and
Brico Dépôt Iberia.
— Expand ‘CastoPro’ zones in Poland to an additional 15 stores.
— Continue to enhance trade-specific product ranges and services
in all markets.
Longer-term ambitions:
Reach more than £1.0 billion sales at TradePoint in the UK & Ireland;
double trade sales penetration in France (versus FY 24/25: 4.8%); and
achieve trade sales penetration of over 30% in Poland (FY 24/25: 18.3%).
Accelerate
e-commerce through
speed and choice
— Continued strong growth of e-commerce penetration.
— Continued success of marketplaces, with propositions now live in the UK, France, Poland
and Iberia.
— Retail media capabilities now live in the UK, France and Poland.
— Screwfix Sprint in the UK is now available in over 485 stores, covering c. 60% of UK population.
— Redesigned B&Q app and new TradePoint app launched.
— Screwfix and B&Q partnered with Deliveroo, with encouraging customer uptake.
19.0%
e-commerce sales penetration
(up 1.6 ppts)
£327m
marketplace GMV
(up 62% year-on-year)
40%
increase in Screwfix Sprint sales
43%
of e-commerce sales from
B&Q’s marketplace, with
c. 2.1m SKUs live
— Accelerate on-boarding of cross-border vendors to
our marketplaces.
— Test click & collect in stores for marketplace orders, initially at B&Q.
— Develop new marketplace functionalities such as complex
promotions.
— Launch retail media at Screwfix.
— Test in-store retail media campaigns.
Longer-term ambitions:
E-commerce to reach 30% sales penetration, one third of which from
marketplace. Retail media income to reach up to 3% of the Group’s total
e-commerce sales.
Build a data-led
customerexperience
— Good results from implementing AI-powered product recommendation and personalisation
engines across all markets (except Iberia).
— Castorama France expanded visibility of Hello Casto AI virtual assistant.
— Developed innovative visual search technology to help customers find the right products to
complete their jobs. The technology is being rolled out at Screwfix and tested at B&Q.
— Implemented in-house supply chain visibility tool in all banners, helping to reduce inventory levels.
— B&Q leveraging AI-driven promotions, markdowns and clearance solutions, resulting in
improved sales, gross margin % and sell-through of stock.
£100m
sales delivered from
AI-powered engines
c. 10%
of B&Q’s e-commerce
sales driven by product
recommendations
100%
increase in web sales from
recommendation engines vs
legacy third-party solutions
c. 500k
interactions with Hello Casto
since launch in 2023
— Launch virtual AI assistant tool at other banners.
— Test visual search technology at B&Q and Castorama France.
— Roll-out at Castorama France and start to implement AI-driven
promotions, markdowns and clearance solutions at Castorama
Poland and Brico Dépôt France.
— Extend SVT data-sharing to additional vendors across all markets.
9Kingfisher 2024/25 Annual Report and Accounts
Strategic priorities Key progress Proof points for FY 24/25 Forward focus for FY 25/26
Differentiate and win
through own exclusive
brands (OEB)
— Focused product development, range reviews and marketing on repairs and maintenance
categories – driving affordability, product innovation and reduced environmental impact.
— Continued to strengthen product ranges at ‘opening price points’.
— Continued to tailor product development to address gaps in the market.
— Added further trade-specific products.
— Helped reduce environmental impact through materials used.
£5.5bn
total OEB sales, representing
43.7% of Group sales
3.0%
sub-category sales
growth following launches
of Magnusson Stakkur and
Erbauer Connecx modular
workshop storage systems
63.0%
of OEB product sales from
Sustainable Home Products
— Further develop repairs and maintenance categories.
— Strengthen product offer in the lowest retail price quartiles.
— Expand trade-specific OEB ranges.
— Target 70.0% of OEB sales to come from SHPs.
Roll out compact
store formats
— High street compact store tests continued to deliver encouraging learnings and results.
— Screwfix City and B&Q Local ultra-compact stores among those concepts providing greater
convenience to customers.
25
active tests across the UK, France
and Poland (3 added in 2024/25)
7
Screwfix City stores opened
– total of 19
1
B&Q Local store opened –
total of 11
1
Castorama Smart store opened
– total of seven
— Open up to 30 Screwfix ‘City’ stores in the UK.
— Continue to collect customer feedback and optimise compact
store formats.
Longer-term ambitions:
Establish the blueprint for all compact store formats and roll out within
our key markets, supporting further market share gains and higher sales
densities and store profitability.
Lead the industry in
Responsible Business
and energyefficiency
— Focused on ensuring colleagues are engaged and able to realise their full potential.
— Made further progress on gender representation.
— Increased engagement with customers on energy- and water-saving products.
— Continued to roll out Green Star product markers.
— Reduced carbon footprint through Scopes 1, 2 and 3, with new targets set.
— Announced new vendor decarbonisation targets to further reduce Scope 3 emissions.
59
eNPS (Employee Net Promoter
Score) – 2 points increase
year-on-year
53.0%
of Group sales from SHPs, 10.0%
of Group sales from energy and
water-saving products
66.0%
reduction in emissions from
Scope 1 and 2, exceeding target
c. 10k
SKUs showing Green
Star marker
38.7%
reduction in intensity of Scope 3
emissions, exceeding the interim
target
30.1%
women in senior leadership team,
39.8% in management roles
— Reduce the intensity of Scope 3 emissions from supply chain and
product use by 40% (since FY 17/18).
— 60% of Group sales and 70% of OEB sales to come from SHPs.
— 100% of wood and paper used in our products to be responsibly
sourced (FY 24/25: 97.9%).
— 35% women in senior leadership, 40% in management roles.
Longer-term ambitions:
Reduce our Scope 1 and 2 carbon emissions by 68.0% (versus FY 16/17)
and Scope 3 emissions by 46.0% (versus FY 17/18) by 2030; reach net
zero emissions across Scope 1 and 2 by 2040, and across Scope 3 by
2050; and further improve ethnic diversity in our workplace, including
increasing ethnic diversity among our UK group executive team and
their direct reports to 16.0% by 2030, with an interim target of 12.5%
by2027.
Agile and lean
— Continued to optimise transport and warehouse operations.
— Flexed store operating hours where feasible.
— Expanded in-house technology engineering centres, developing talent to drive performance
and cost efficiencies.
c. £120m
structural cost reductions and
productivity gains
£107m
lower same-store net inventory
year-on-year
— Deliver further structural cost and inventory reductions.
— Further distribution centre space optimisation for an overall
reduction of c.12% by FY 27/28.
— Extend supply chain visibility tool data-sharing to additional
vendors across all markets.
Performance against priorities continued
Other Information
10 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Strategic priorities Key progress Proof points for FY 24/25 Forward focus for FY 25/26
Differentiate and win
through own exclusive
brands (OEB)
— Focused product development, range reviews and marketing on repairs and maintenance
categories – driving affordability, product innovation and reduced environmental impact.
— Continued to strengthen product ranges at ‘opening price points’.
— Continued to tailor product development to address gaps in the market.
— Added further trade-specific products.
— Helped reduce environmental impact through materials used.
£5.5bn
total OEB sales, representing
43.7% of Group sales
3.0%
sub-category sales
growth following launches
of Magnusson Stakkur and
Erbauer Connecx modular
workshop storage systems
63.0%
of OEB product sales from
Sustainable Home Products
— Further develop repairs and maintenance categories.
— Strengthen product offer in the lowest retail price quartiles.
— Expand trade-specific OEB ranges.
— Target 70.0% of OEB sales to come from SHPs.
Roll out compact
store formats
— High street compact store tests continued to deliver encouraging learnings and results.
— Screwfix City and B&Q Local ultra-compact stores among those concepts providing greater
convenience to customers.
25
active tests across the UK, France
and Poland (3 added in 2024/25)
7
Screwfix City stores opened
– total of 19
1
B&Q Local store opened –
total of 11
1
Castorama Smart store opened
– total of seven
— Open up to 30 Screwfix ‘City’ stores in the UK.
— Continue to collect customer feedback and optimise compact
store formats.
Longer-term ambitions:
Establish the blueprint for all compact store formats and roll out within
our key markets, supporting further market share gains and higher sales
densities and store profitability.
Lead the industry in
Responsible Business
and energyefficiency
— Focused on ensuring colleagues are engaged and able to realise their full potential.
— Made further progress on gender representation.
— Increased engagement with customers on energy- and water-saving products.
— Continued to roll out Green Star product markers.
— Reduced carbon footprint through Scopes 1, 2 and 3, with new targets set.
— Announced new vendor decarbonisation targets to further reduce Scope 3 emissions.
59
eNPS (Employee Net Promoter
Score) – 2 points increase
year-on-year
53.0%
of Group sales from SHPs, 10.0%
of Group sales from energy and
water-saving products
66.0%
reduction in emissions from
Scope 1 and 2, exceeding target
c. 10k
SKUs showing Green
Star marker
38.7%
reduction in intensity of Scope 3
emissions, exceeding the interim
target
30.1%
women in senior leadership team,
39.8% in management roles
— Reduce the intensity of Scope 3 emissions from supply chain and
product use by 40% (since FY 17/18).
— 60% of Group sales and 70% of OEB sales to come from SHPs.
— 100% of wood and paper used in our products to be responsibly
sourced (FY 24/25: 97.9%).
— 35% women in senior leadership, 40% in management roles.
Longer-term ambitions:
Reduce our Scope 1 and 2 carbon emissions by 68.0% (versus FY 16/17)
and Scope 3 emissions by 46.0% (versus FY 17/18) by 2030; reach net
zero emissions across Scope 1 and 2 by 2040, and across Scope 3 by
2050; and further improve ethnic diversity in our workplace, including
increasing ethnic diversity among our UK group executive team and
their direct reports to 16.0% by 2030, with an interim target of 12.5%
by2027.
Agile and lean
— Continued to optimise transport and warehouse operations.
— Flexed store operating hours where feasible.
— Expanded in-house technology engineering centres, developing talent to drive performance
and cost efficiencies.
c. £120m
structural cost reductions and
productivity gains
£107m
lower same-store net inventory
year-on-year
— Deliver further structural cost and inventory reductions.
— Further distribution centre space optimisation for an overall
reduction of c.12% by FY 27/28.
— Extend supply chain visibility tool data-sharing to additional
vendors across all markets.
11Kingfisher 2024/25 Annual Report and Accounts
Key performance indicators
Total sales decreased by 0.8% on a constant currency basis,
(1.5% decrease at reported rates) to £12,784 million. This reflected
resilient core category sales (supported by repairs, maintenance
and existing home renovation activity). As expected, ‘big-ticket’
category sales were weaker, reflecting trends across the broader
market, and seasonal category sales were impacted by
unfavourable weather in Q2.
Retail profit decreased by 6.6% on a constant currency basis,
to £696 million. This reflected lower profits in France and higher
losses from our joint venture in Turkey, partially offset by higher
profits in Poland and reduced losses in Romania. Profits in the
UK & Ireland were supported by £33m of one-off business rates
refunds at B&Q. On a reported basis, retail profit decreased
by 7.0%.
Financial performance indicators
Total sales Retail profit
1
We use a range of financial and non-financial key performance indicators (KPIs) to track and evaluate delivery of our ‘Powered
byKingfisher’ strategy.
1. Denotes an Alternative Performance Measure (APM). APMs are defined in the Glossary on pages 205 to 207.
Free cash flow of £511 million, down £3 million, reflecting a
reduction in inventory driven by strategic reduction initiatives,
a reduction in seasonal stock, product cost price deflation and
improved stock health. Net payables increased by £21m, largely
reflecting the timing of supplier payments and higher deferred
income recognised in trade creditors. Capital expenditure was
also lower versus the prior year.
Free cash flow
1
2022/23
2023/24
2024/25
£12,784m
£13,059m
£12,980m
2022/23
2023/24
2024/25
£923m
£749m
£696m
2022/23
2023/24
2024/25
£(40)m
£514m
£511m
Like-for-like sales of -1.7% excludes a +0.9% sales impact from
a net increase in space, driven by Screwfix store openings in
the UK & Ireland, and Castorama in Poland. During the year, we
opened 50 stores – including 33 stores in the UK, one in Ireland,
11 in France, of which 10 were Screwfix stores, and five in Poland.
We closed five stores in the UK, one in France and one in Romania.
Adjusted pre-tax profit
1
Like-for-like sales
1
Adjusted pre-tax profit decreased by 7.0% to £528 million,
reflecting lower retail profit, partially offset by lower net
finance costs and share of JV interest and tax.
2022/23
2023/24
2024/25
£528m
£758m
£568m
2022/23
2023/24
2024/25
(2.1)%
(3.1)%
(1.7)%
Other Information
12 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Non-financial performance indicators
Inclusion and diversity Responsibly sourced wood and paper
Women in senior leadership increased by 5.2% to 30.1%
(FY 23/24: 28.6%) and women in management increased by 0.5%
to 39.8% (FY 23/24: 39.6%). The progress reflects our continued
focus on strengthening gender diversity across the Group,
The share of responsibly sourced wood and paper in our
products as a percentage of total SKUs sold is up year-on-year
by 1.3% to 97.9% (FY 23/24: 96.6%) reflecting our commitment
to achieving our target by the end of FY 25/26.
1. We have restated FY 23/24 reduction due a change in our calculation methodology for logistics.
We have achieved our community target to help two million people whose housing needs are greatest by 2025/26, ahead of schedule.
Total Group sales from Sustainable Home Products (SHP) are up
by 8.1% to 53.4% (FY 23/24: 49.4%). Share of SHP sales for OEBs
increased by 5.3% to 63.3% (FY 23/24: 60.1%). This progress
reflects our commitment to achieving our target by the end
of FY25/26.
Sustainable Home Products: % of retail sales
2022/23
2023/24
2024/25
97.9%
94.5%
96.6%
2022/23
2023/24
2024/25
53.4%
46.8%
49.4%
38.9%
25.8%
2022/23
2023/24
2024/25
Senior leadership, % of women
Management, % of women
30.1%
28.6%
39.6%
39.8%
Carbon emissions reduction
We have reduced absolute greenhouse gas emissions from
our operations by 66.0% since FY 16/17, surpassing our science-
based target of 38% reduction by FY 25/26. The key drivers
for reductions are decarbonisation efforts across our logistics
network and property portfolio. Scope 3 emissions intensity
from supply chain and product use is down 38.7% since FY 17/18
reflecting our commitment to achieving 40% reduction by the
end of FY 25/26.
34.0%
51.0%
2022/23
2023/24
2024/25
Scope 1 and 2 (own operations), % absolute emissions reduction
Scope 3, % emissions intensity reduction
66.0%
63.5%
1
41.6%
38.7%
13Kingfisher 2024/25 Annual Report and Accounts
Business model
We offer home improvement products and services to
consumers and trade professionals across our stores,
via our e-commerce channels, and through our
franchise and joint venture partners. By delivering
our strategy and operating as a responsible
business, we create sustainable value for our
customers, colleagues, shareholders, suppliers
and wider society.
Further information on how we consider the impact of climate
change and build sustainable value for our stakeholders can be
found on pages 30 to 46 and page 96, respectively.
Our key resources
Engaged colleagues with the
right skills to serve customers.
c. £13 billion of sales: collective
buying scale.
Our people
and culture
Our financial
strength and scale
Distinct banners which
address diverse customer
needs with different models,
strong customer relationships
and a clear positioning and plan.
Our banners occupy number
one or number two positions
in our key markets.
Our diverse and trusted
banners
Our market-leading
positions
Strong network of stores
and strong e-commerce
capabilities, as well as
franchiseand joint
venture partners.
Our own exclusive brands
(OEBs) allow ourbanners to
offer differentiated products
in terms ofinnovation,
affordability and reducing
environmental impact.
Our channels Our own exclusive
brands
Close collaboration with our
suppliers to bring the best
home improvement products
to our customers at great
prices, while ensuring they
meet our ethical standards.
Longstanding commitment to
make a positive impact for
communities, colleagues,
customers and the planet.
Our supplier
relationships
Our Responsible
Business practices
Other Information
14 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Our leading banners serve different customer needs within
their markets. They offer product ranges and services that meet
these distinct needs through their own commercial approach
and business model. As trusted brands, they connect with
customers and drive loyalty. They are powered by the scale,
strength and expertise of the Kingfisher Group.
Benefits brought by the Group include sourcing and buying,
differentiated OEB, technology and partnerships capability,
shared services and Centres of Excellence. The Group is
underpinned by a common culture and values, including a
shared commitment to responsible business practices.
1. Sale expected to complete during the first half of FY 25/26, as announced
on 18 December 2024.
How we create value Who we create value for
Making better homes
and better lives for
everyone; helping
tradespeople to get
their jobs done quickly
and affordably.
Inclusive, rewarding
work and careers,
developing skills.
Operating as a
responsible business,
with strong community
involvement.
Growing the value
of the company
sustainably.
Growing our business
through different
partnership models,
including our joint
venture in Turkey
and wholesale and
franchise models.
Protecting and
restoring natural
resources and tackling
climate change.
Sharing value in
our supply chain.
Customers Colleagues
Communities
and society
Shareholders
Partners
Environment
Suppliers
Sourcing and buying delivering lower cost prices across all
products (OEB and brands).
Technology and product providing all our banners with access
to the best technologies and complementary partnerships.
Shared services and lower-cost functions.
Centres of Excellence to set strategy and targets, to share
knowledge and best practices, to support implementation,
andto help steer progress.
Culture and values providing a framework for our core
behaviours, values, and responsible businesspractices.
Differentiated OEB which are innovative and provide a
key source of difference.
Romania
1
15Kingfisher 2024/25 Annual Report and Accounts
Our People and Culture Plan is part of the ‘Powered by
Kingfisher’ strategy and focuses on building an organisation that
delivers performance. It is guided by our purpose and is based
on four pillars:
— Build a lean and agile organisation.
— Source and develop the skills and talent that will give usthe
capability to fuel growth.
— Create an agile, inclusive culture led by trust.
— Develop diverse leaders who inspire growth.
We strive to be an inclusive employer and create a culture
where every individual feels they belong; free to be themselves,
share their views and ideas, and build the career they want.
Delivering our People and Culture Plan
Progress made across our people and culture pillars in 2024/25:
Lean and agile organisation
We evolved our operating model to fuel our strategy, harnessing
the benefit from Group scale and shared investment in innovation.
We have continued to unlock productivity gains in all banners and
corporate functions, and we are undertaking a range of measures
to reduce costs.
Our Offer & Sourcing function focused on removing complexity,
increasing speed to market and strengthening the use of
customer insight. We are continuing to embed our Technology
Operating Model & Digital Centre of Excellence by focusing
on our ways of working and driving ongoing simplification. Our
Engineering Centres in Krakow and Cluj have grown to 230
people combined.
B&Q has also trialled new store structures and efficiency
measures. Over 100 processes have been simplified and new
workflows allocate activity directly to colleagues, resulting in
greater empowerment and removing unnecessary steps. The
trial was expanded from eight to 16 stores inQ3 2024, and will be
reviewed in 2025.
Optimise colleague reward
We now have pay transparency readiness plans in place across
all markets in preparation for the EU Pay Transparency Directive.
As a responsible employer, we have continued to monitor the
cost of living in each of our markets and have initiatives in place
to support colleagues in our stores and head offices. We continue
to invest in colleague pay to ensure that we are aligned to market
practice and that our colleagues are appropriately supported
with the increasing costs of living. We have enhanced our
approach to UK Gender Pay reporting, and our median hourly
pay gap has reduced to 0.8%.
Through our continued focus on optimising colleague reward, we
saw 2024 employee Net Promoter Scores (eNPS) for reward
rise by five points.
People and culture
Capabilities to fuel growth
Through our commitment to building in-house capabilities,
ournew Learning Management System, LEO, launched to Group
Functions colleagues in November 2024, with access extending
across some of our banners in 2025. With up to 4,000 new
courses from over 200 learning providers, as well as personalised
learning paths developed by internal experts on functional
specialisms and disciplines, this investment is a key step towards
making learning a core part of how we work. It gives colleagues
the tools and resources to take ownership of their growth and
unlock new opportunities for development.
We invested in capability growth in priority areas: eCommerce,
Retail Media, Range Construction, Data and Trade. This included
new Trade Sales Partner roles in B&Q, Castorama Poland and
Brico Dépôt Iberia, building more direct and personalised
relationships with trade customers. In Brico Dépôt France,
Relationship Managers have had access to a dedicated training
programme to improve their trade skills. We have seen positive
early results, including greater frequency of visits by trade
customers and higher basket values.
We focused on our people leader behaviours, building their
leadership capabilities across areas such as customer focus,
inclusion and accountability.
Improving employability
By understanding organisational capability gaps and anticipating
future skills needs, apprenticeships continue to be a core way
we develop talent and build capability; creating apipeline of
colleagues able to support us to deliver our strategic goals.
In 2023, we set a new target to deliver 20,000 Group-wide
apprenticeships, traineeships or formal qualifications by 2030,
and we have delivered 8000+ to date.
With B&Q alone offering over 40 apprenticeship programmes,
we’re confident that we are building the right skills and investing
in critical capabilities for the future. Alongside apprenticeships,
B&Q has continued to build on its emerging talent pathways
programmes, with offers in HR and Finance, giving those on
the programmes the opportunities togain experience across
the functions.
Our development pathways are monitored to ensure they are
supporting underrepresented talent. In 2024, 44% of our retail
apprentices at Screwfix were women; this is an increase from
41% in 2023. In Brico Dépôt France and Castorama France,
coaching to support women progress into management roles is
enabled through working with the external “Chance” programme.
B&Q also offers two in-house development programmes for
ethnically diverse colleagues, with curated opportunities
designed to accelerate progression.
Other Information
16 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
An agile, inclusive culture led by trust
We continue to assess our progress on our culture against
both formal and informal key metrics, including through regular
colleague surveys using the Workday Peakon platform, the
Kingfisher Colleague Forum (KCF) and works councils, colleague
networks, social channels and regular Town Hall meetings. We
have introduced additional new Q&A sessions to our Town Halls,
to provide a more comprehensive opportunity for engagement
and partnership with our colleagues.
Throughout 2024/25 our Senior Independent Director,
Catherine Bradley, continued to represent the Board at the KCF,
along with the CEO and Chief People Officer, with representation
from all banners and Group Functions. Our colleague forums are
a strong source of dialogue between colleagues and senior
leadership, with the KCF influencing decisions such as how best
to engage employees in refreshed whistleblowing policies and
how to best land our allyship ambitions across our culturally
diverse markets.
Top quartile eNPS – compelling colleague proposition
aligned to strategy and performance
Colleague engagement across the Group remained strong this
year. Our colleague engagement score of 59 eNPS is significantly
ahead of the global retail benchmark (+43 points above the median),
placing us in the top 5% of retailers. We heard from 86% of our
colleagues (aligned with 2023/24 and well above Peakon’s retail
benchmark), with colleagues sharing over 256,000 comments,
demonstrating their confidence in sharingfeedback and ideas.
We saw improvement in our attrition levels across all banners
inthe year (the 12-month rolling colleague attrition was 24.7%,
versus29.7% in September 2023).
Recognised and trusted as progressively more inclusive
Our inclusion score, based on the question ‘I feel a sense of
belonging at Kingfisher’ is 56 eNPS, placing us in the top 5%
ofPeakon’s all-industry inclusion benchmark. Colleagues also
indicated a one point rise in trust and a two point improvement
in collaboration. We are continuing to make strides in building
a more agile culture, with an agility score of 59 eNPS (up four
points year-on-year).
Our Group-wide allyship campaign, ‘Together. Stronger.’ was
launched in November in 2023 and educates on the importance
of everyday allyship, setting expectations on inclusive behaviours.
We had over 90% participation in our allyship learning. B&Q
launched ‘Our Stance on Discrimination’, a video bringing to
life the behavioural expectations of colleagues, vendors and
contractors alike, and also released the ‘Be an active ally’
campaign, an immersive leader-led activity, reaching all
colleagues. This explored non-inclusive behaviours, the role
of allyship within teams and setting collective commitments.
Our colleague networks have flourished this year, not only in
creating safe spaces for colleagues, but also creating positive
change across the business. Outside of the UK, we’ve seen our
participation in colleague networks increase, with a number of
colleagues from our newly formed allyship network – Inclusion
and Diversity Ambassadors – based in France, and our LGBTQ+
subgroup in France. At Screwfix, building on the launch of its
Black Employee Networking Community, the RCE network (Race,
Culture and Ethnicity) and Gender Network launched this year.
As part of creating a culture where everyone feels they can
belong and thrive, our emphasis on wellbeing has deepened too,
and we have seen an increase of three points in our wellbeing
scores. We have wellness champions increasingly in place for
peer-to-peer support across our locations.
We have created deeper alignment between our community
work and our I&D strategy, with a focus on positively impacting
underrepresented groups, and we have supported initiatives
across our banners’ charity foundations to improve spaces for
women in need. Brico Dépôt Romania’s ‘Good Homes Change
Lives’ programme invested support in two projects creating safe
and healing spaces for victims of domestic abuse and trafficking.
Brico Dépôt Iberia is piloting the Violet Dot project, displaying
this symbol in stores to signify an active commitment against
gender violence.
To encourage greater transparency and openness, welaunched
our Speak Up awareness campaign across the Group, refreshing
our Whistleblowing Policy and reminding colleagues about the
importance of speaking up when they have an ethical concern.
Our banners, and the ‘Together. Stronger.’ campaign have been
externally recognised for their commitment to inclusion and
diversity and creating positive working environments. Our sponsor
of the Diversity in Tech network (and CTO) Chris Blatchford was
awarded Outstanding Advocate for Women in Tech (Male Ally)
at the Women in Tech Employer Awards. B&Q was awarded gold
membership for the Armed Forces Covenant and became a
proud signatory of the Race at Work Charter, a Business in
the Community initiative focused on seven actions to drive
race equality.
We continue to use data and insights to drive our actions, and
inthe UK we know more about our workforce than ever before,
having now reached 78% completion through our diversity
data collection campaign. This enables us to understand how
representative we are of our customers and the communities
weserve. In the UK, we also ask our candidates diversity data
questions during recruitment to better understand and drive
equality through our candidate journey.
Diverse and inspiring leaders
Highly engaged leaders, collaborating to drive growth
We continue to invest in our leadership capability, further
strengthening collaboration across the leadership team and
building our future leadership pipeline. The engagement ofthe
Kingfisher Leadership Team (KFLT) remains high and well above
the Group benchmark at 67 eNPS. The KFLT reported a 15-point
year-on-year improvement in its perception of inclusive
leadership at Kingfisher and senior leader engagement scores
by gender differ by only one point, suggesting our ongoing
efforts to create an inclusive environment are making a
difference.
17Kingfisher 2024/25 Annual Report and Accounts
Robust senior leadership succession pipeline
In 2024/25 we continued to enhance our leadership to
ensure we have the skills and experience required to deliver
our strategic priorities. We made 54 appointments into critical
leadership roles in our banners and functions. During the year,
Bhavesh Mistry succeeded Bernard Bot as CFO; more information
on this can be found in the Nomination Committee Report. Two
in three senior leader appointments in 2024/25 were internal;
thisistestament to our focus on internal succession planning.
Our succession coverage continues to be a priority in the
context of our evolving requirements and expectations. To
support this, we have delivered Kingfisher-wide development
opportunities to our next generation of senior leaders, focused
on both business skills and leadership skills and behaviours.
Diverse representation
We continue to make solid progress towards achieving our gender
target of 40% women in management by 2025/26 (currently
at 39.8%). We continue to focus our work on increasing senior
leadership gender diversity, with a 1.5% improvement this year.
To support this, the Kingfisher Leadership Team (KFLT)
participated in workshops on inclusive hiring, incorporating
external best practice. We further embedded our commitment to
having balanced shortlists with clear impact – in 2024/25 where
we had diverse shortlists, 63% of senior hires were female.
Our focus on diversity goes beyond gender, with a strong emphasis
on reflecting the customers and communities we serve. In 2024
we set a target of improving ethnic diversity in our most senior
leadership in the UK to 12.5% by 2027, and 16% by 2030 (see page
80 for more information on how this aligns with the Parker Review).
Our strategy to deliver this target is underpinned by seeking insight
from candidate and colleague data on how people move into and
through our organisation; identifying and addressing barriers to
progression and gaps in sentiment between underrepresented
andmajority groups; and working in close partnership with our
colleague networks and forums to evolve our culture.
To ensure we are reaching diverse talent, we have renewed and
upscaled our commitment this year with Black Young Professionals
(BYP) and have now extended the partnership to B&Q and Screwfix.
BYP has a mission to advance the careers of millions of Black
professionals by connecting members to suitable career
opportunities. In 2024, in Group Functions in the UK, France and
Poland, we launched our partnership with Evenbreak, a leading
international disability job board run by, and for, people with
lived experience of disability.
Our People Plan 2025-2028
Market challenges demand high levels of focus and performance
for the next phase of our transformation. This context, combined
with technological change and increasing colleague expectations,
has shaped our priorities for the next phase of our plan. For
2025/26 we will focus on three priorities:
— Further enhance KFLT capability and collaboration to drive
our strategic ambition and bring our purpose to life.
— Further optimise our operating model to drive growth
efficiently.
— Define and develop a culture of high performance and growth.
In addition, we will continue to embed our work on maintaining
strong colleague engagement, building our long-term pipeline
forsenior leadership roles, realising our targets around diverse
representation and embedding our goals on inclusion, learning,
careers and apprenticeships.
Equal opportunities
Kingfisher is committed to creating a workplace where everyone
is treated with fairness, respect and dignity. No colleague is to be
treated less favourably or experience discrimination (unlawful or
otherwise) on any grounds. Entry into and progression within the
company is based solely on personal ability and competence
to meet set job criteria. Our Equal Opportunities, Inclusion and
Diversity policy applies to every part of employment, including full
and fair consideration during recruitment and selection processes,
opportunities for training, development and promotion, and terms
and conditions of employment. Our employment policies, practices
and procedures promote accessibility for disabled people,
providing reasonable adjustments and appropriate training
for their aptitudes and abilities, where appropriate.
Further detail on our policies for employees is set out on page 25.
Board, senior management and employee diversity
At 31 January 2025, the gender breakdown of colleagues and
directors was as follows:
1. The 2023/24 gender breakdown of colleagues and directors was as follows:
— The Board: 4 female (44.4%) 5 male (55.6%).
— Senior leadership: 89 female (28.6%) 222 male (71.4%)
— Total workforce: 32,297 female (43.3%) 42,228 male (56.7%)
— Group Executive and their direct reports: 30 female (36.1%) 53 male (63.9%)
2. Senior leadership under this target is defined as those who are eligible for
our Performance Share Plan.
3. Turkey joint venture, Koçtaş, not included.
People and culture continued
Other Information
18 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
50%
50%
The Board
1
Female: 5
Male: 5
30.1%
69.9%
Senior leadership
1, 2, 3
Female: 95
Male: 221
43%
57%
Total workforce
1, 3
Female: 31,484
Male: 41,694
38.5%
61.5%
Group Executive and their
direct reports
1
Female: 37
Male: 59
Section 172 statement
The Board fully recognises the importance of all our
stakeholders in pursuit of the success of the company.
Remaining mindful of our Companies Act 2006 (the ‘Act’)
Section 172(1) responsibilities, the needs and concerns of our
stakeholders and the external impact of the Company’s activities
are both an intrinsic part of our decision-making process.
The following pages, which include examples of two key
decisions taken during the year, comprise our Section 172(1)
statement, detailing how the Board has had regard to the
matters set out in Section 172(1) (a) – (f) when performing its duty
under Section 172 of the Act. Detail on the Board’s activities and
other key decisions made during the year are on page 75.
Stakeholder engagement is set out on pages 21 to 24 including
how each of our stakeholder groups have been engaged during
the year, the outcomes of the engagement as well as key
priorities for 2025/26.
Board information and monitoring
Frequently, thebusiness carries out significant engagement
before matters are put to the Board for consideration, to
support the directors to assess whether, and ensure that all
stakeholder views are, considered fairly. This engagement may
be formal or informal and is often governed by policies, control
frameworks, regulation and legislation.
Before reaching a decision, the Board considers how proposed
actions and behaviours of the company may affect its key
stakeholders and the environment, as well as the company’s
reputation and long-term success. Kingfisher’s actions and
behaviours are governed by a robust governance framework,
including Group policies and the Kingfisher Code of Conduct.
This framework allows the Board to have due regard to the
impact of decisions on the following matters specified in
Section 172(1) of the Act, as outlined in the table below.
Section 172
matter
Approach taken Where to find further information
The likely
consequences
of any decision
in the long-term
The Board sets the strategic direction of the company. It considers at least annually
theGroup’s long-term plan, strategy and objectives to align with the Group’s purpose,
valuesandstandards and ensure long-term sustainable value creation for its shareholders
andwidersociety.
Performance against priorities: pages 8 to 11
Risks: page 60
Viability statement: page 66
Principal risks: pages 61 to 65
Board activities: page 75
The interests of
the company’s
employees
The Board sets the Group’s purpose, values and standards to align with the culture of the
company, and the Board’s belief that diversity andinclusion provide value throughout the
company. This belief is embedded in Kingfisher’s purpose and business strategy, and in our
stated goal to build an agile, inclusive culture led bytrust. The Board recognises that colleagues
are critical to the successful delivery of our strategy and priorities and considers failing to
attract, retain and develop colleagues to be a principal risk. Information on how the Board
manages and monitors the risk is set out in the risksection.
Business model: pages 14 and 15
People and culture: pages 16 to 18
Stakeholder engagement: page 22
Non-financial and sustainability information
statement: page 25
Responsible Business: pages 26 to 29
Principal risks: page 61
Board activities: page 75
Remuneration Committee: pages 88 and 89
Responsible Business Committee: page 81
Fostering the
company’s
business
relationships
with suppliers,
customers
and others
Business relationships with suppliers, customers and other counterparties are managed by
theGroup Executive, providing a direct line of communication for receiving feedback and
resolving issues, and where appropriate, reporting the outcome of engagement and any issues,
to the Board. The Board considers a resilient supply chain to be key to our business and the
achievement of our strategic objectives, and that major disruption to our supply chain is a
principal risk. New suppliers are subject to due diligence checks and must comply with our
Code of Conduct to ensure that no reputational or legal issues would arise from engaging
withthat counterparty.
Business model: pages 14 and 15
Stakeholder engagement: pages 21 to 24
Responsible Business: pages 27 and 28
Principal risks: pages 61 and 65
Viability statement: page 66
The impact of
the company’s
operations on
the community
and the
environment
The Board recognises the importance of supporting local communities to strive for better
homes and seeks to invest in helping those most in need; giving our time, products and financial
contributions in line with the Group’s purpose, values and standards which align with the
company’s Responsible Business targets.
The Board is responsible for setting the company’s Responsible Business priorities relating to
communities and the environment. The Responsible Business Committee monitors delivery of
the strategy and ensures that the necessary policies and frameworks are in place to allow the
Group to conduct its business in a responsible manner in relation to environmental and social
matters. The company’s policies in this regard are set out in the Responsible Business and
Non-Financial and Sustainability Information Statement reports.
Business model: pages 14 and 15
Stakeholder engagement: page 24
Responsible Business: page 27
TCFD: pages 30 to 46
Responsible Business Committee: pages 81 and 82
Responsible Business Report:
kingfisher.com/responsible-business
Maintaining a
reputation for
high standards
of business
conduct
The Board recognises that all our stakeholders expect the company to conduct business
in a way that is responsible and in everyone’s long-term interest. This belief is embedded
throughout Kingfisher as we expect everyone working for us or with us to carry out our
business professionally, fairly and with complete integrity.
The risk of failing to deliver these standards is included in the Board’s review of the company’s
principal risks, which is conducted periodically. The principal risks and uncertainties facing the
business are set out in the Strategic Report. The Audit Committee oversees the company’s
requirements for high standards of conduct and business ethics. The Responsible Business
Committee ensures that the necessary policies and frameworks are in place to allow the
Group to conduct its business responsibly in relation to ethical matters.
Business model: pages 14 and 15
People and culture: 17
Non-financial and sustainability information
statement: page 25
Responsible Business: pages 28 and 29
Principal risks: page 64
Board activities: page 75
Audit Committee: pages 86 and 87
Acting fairly
between
members of
the company
The Board oversees the Investor Relations programme which involves routine engagement
with the company’s shareholders. The Board receives regular feedback on engagement, which
during the year included an independent investor perception survey, and the Chair and other
non-executive directors make themselves available for meetings as appropriate and attend
the company’s AGM.
The investor relations programme is designed to promote formal engagement with
investors and is typically conducted after each half-yearly results announcement.
Shareholder presentations are made available on the company’s website. The company
has a single class of share in issue with all members of the company having equal rights.
Business model: pages 14 and 15
Stakeholder engagement: page 23
Financial review: page 54
Board activities: page 75
Directors’ report: pages 121 and 122
Remuneration Committee: page 98
19Kingfisher 2024/25 Annual Report and Accounts
Case study: approval of Scope 3 targets
In September 2024, the Board approved Kingfisher’s
Scope 3 net zero and emission reduction targets.
1
During the year, the Board, supported by the Group
Climate Committee and Responsible Business Committee,
oversaw the development and implementation of Kingfisher’s
net zero roadmap and delivery plan which were aligned to
the Science Based Targets initiative (SBTi) trajectory.
The Board considered this commitment carefully and in
the context of the company’s main stakeholder groups
and Section 172 matters:
— As well as aligning with Kingfisher’s Responsible
Business priorities, a net zero roadmap would prepare
the company for likely future government measures
in the UK and EU with regards to net zero commitments
and regulatory ESG disclosure requirements.
— Setting a Scope 3 net zero target would provide a
commercial opportunity to strengthen the Sustainable
Home Products (SHP) programme to meet customer
needs and expectations, and support the company to
deliver its long-term strategic goals.
— Feedback from investors and analysts supports the
rationale for setting Scope 3 targets, with increased
focus on assessing how companies address climate
risks and their climate commitments both in the short
and long term.
— Insights highlighted that Kingfisher’s work on net zero
was important for our colleagues and the Board asked
for visibility of the communication and engagement
campaign for colleagues.
— Suppliers expect us to set net zero targets and our
supplier emission reduction targets
2
were received
positively by our suppliers, sector peers, NGOs and
the European Commission.
— A net zero roadmap would directly impact the
community and environment through delivering
carbon reductions that would reduce Scope 3
emissions, and through our membership of EDRA/
GHIN
3
, to influence the industry globally.
— The financial impact would be managed carefully
in the medium to long term through controlling our
exposure, ensuring investment remains within agreed
scope, while delivering our net zero ambition.
1. To reach net zero by 2050 and our interim target to achieve a 46%
reduction by 2030 versus a 2017/18 baseline, and our new interim
Scope 1 and 2 reduction target to deliver 68% reductions by
FY 2030 against a FY 2016/17 baseline.
2. For Kingfisher’s 100 biggest vendors by Scope 3 emissions, to
create an SBTi-aligned roadmap and decarbonisation target by
2028; for the next 450 vendors, to create an SBTi-aligned roadmap
and decarbonisation target by 2030; and for the remaining vendors,
to set a climate reduction plan by 2030.
3. European DIY Retail Association and the Global Home
Improvement Network.
Section 172 statement continued
Case study: sale of Brico Dépôt Romania
During the year, the Group announced the sale of its
Brico Dépôt Romania (BDR) business to Altex Romania
for an enterprise value of €70 million
1
(c.£58 million
2
).
The sale was agreed on 18 December 2024, and is
expected to complete during the first half of 2025/26.
In reaching its decision to proceed with the sale of BDR
to Altex, the Board considered the long-term impact of
the transaction carefully, giving due consideration in the
context of the company’s main stakeholder groups and
Section 172 matters:
— The Board considered that the divestment will enable
the Group’s management team to focus on markets
where Kingfisher is most strongly positioned, and
further invest in initiatives for the benefit of customers,
investors, employees and wider business relationships
of the Group outside of Romania over the medium
and long term.
— The Board also considered that the sale of BDR
was not expected to materially impact these key
stakeholders outside Romania in the short term,
save that there may be slightly lower demand for
some suppliers of goods and services not for resale,
such as IT. In particular, BDR contributed only 2%
(approximately) of Group sales and, as noted below,
BDR’s ongoing operations in Romania are expected to
provide its suppliers with the continuing opportunity
to provide goods and services after completion of
the sale.
— Within Romania, the Board considered the impact on
BDR and its business of joining the Altex group, and
how this will affect the relevant stakeholders. The
Board considered Altex’s market position and strong
reputation in Romania, and Altex’s desire to sustain
and grow BDR’s business. In light of these factors, the
Board concluded that the transaction would protect
the interests of BDR’s employees (both in-store and
at head office) and suppliers and other business
partners, in each case taken as a whole.
1. Subject to customary adjustments relating to net debt and working
capital at completion.
2. Figures presented in GBP use the following exchange rate:
EUR 1.21: GBP1.00.
Other Information
20 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Our stakeholders at a glance
Why we engage
Customer satisfaction and safety are pivotal to the
success of our business. The needs, behaviours and
feedback of our customers are collected, assessed,
and used to develop our long-term strategy.
What matters to them
— Extended choice across all home
improvement categories.
— Affordable, high-quality, sustainable and
safe products.
— Excellent customer service and experience in-store
and online.
— Support in making more sustainable choices.
Why we engage
Our investors rely on us to protect and manage their
capital in a responsible way while generating long-term
value. Investors and potential investors need a clear
understanding of our business, our growth potential,
ourstrategy to realise that potential, our performance
and the risks and uncertainties we are managing.
What matters to them
— Macroeconomic, housing market and consumer
expenditure risks on our business performance.
— Capital allocation priorities and dividend policy.
— Progress on our Responsible Business agenda.
— Continued execution of our strategic priorities,
including trade, e-commerce, data and retail media.
— Delivery of our France plan.
Why we engage
It is important to us that we meet growing expectations
on companies to undertake strong environmental, social
and governance action, and we are committed to having
a positive impact on the lives of our customers,
colleagues and communities.
What matters to them
— Reduction of carbon emissions generated by
our operations.
— Training and employment opportunities.
— Community support and charitable giving.
— Building colleague momentum around our
community strategy.
Why we engage
We believe an effective people strategy and strong
culture are essential to the successful delivery of our
core priorities. Being able to attract, retain, and develop
diverse talent is one important part of fostering a
stronger, more inclusive culture, as is considering
the views of colleagues in decision-making.
What matters to them
— A supportive and inclusive workplace.
— Pay transparency, fairness and pay equity.
— Representation in senior leadership
andmanagement.
— Inflation and wage increases.
Why we engage
The trusted partnerships we have with our suppliers
are critical to meeting customer needs, supporting
responsible business, maintaining quality standards
and enhancing affordability. These partnerships drive
reliability, sustainability and value for our customers.
What matters to them
— Strong market presence, giving volume
growth opportunity.
— Long-term partnerships, stability and transparency.
— Ethical and Responsible Business practices.
— Continuous improvement in operational efficiencies
and collaboration.
— Reliable payment terms.
Why we engage
Our relationship with regulators and government means
we can fully realise our potential, provide our best
employment opportunities and contribute economic
prosperity in the places where we operate.
What matters to them
— Clear vision on climate related risks
and opportunities.
— Compliance with the relevant regulations where
required under applicable legislation.
— Compliance with increasing reporting and disclosure
rules with particular focus on ESG, corporate
governance and controls, and EU pay gap
and transparency.
Customers
Investors
Communities and
non-governmental organisations
Colleagues
Suppliers
Regulators and government
21Kingfisher 2024/25 Annual Report and Accounts
Link to strategy
See Our strategy on pages 6 and 7.
1
5
3
7
4
8
2
6
Stakeholder engagement
Customers
Group engagement
— Continuous retail and trade customer surveys. Over
1.4 million customers surveyed: monitoring customer
satisfaction in-store and on our websites; tracking
consumer brand perceptions over time against our
competitors on a range of issues, including sustainability
and carbon impact; monitoring consumer sentiment and
home improvement activity levels.
— Commissioning of ad hoc research to gather feedback
before and after launching new products, services, or
store concepts.
— Monitoring of customer reviews on our websites and
customer ratings and comments on Google.
— Regular ‘price reality’ and ‘price perception’ monitoring of
price indices versus our competitors in key categories.
— Meeting and engaging with customers at Screwfix Live
in September 2024 which saw a 40% year-on-year
increase in attendance.
Board engagement
— Regular updates on customer opinion, behaviour and
feedback, monthly net promoter scores (NPS), brand
health tracking and customer insight.
— Receipt of a commercial dashboard on a monthly basis
which consolidates a broad range of metrics, including
price indices, market trends, competitor activity and
customer insight by banner.
— Review of the risk of cyber threats facing the company
as well as its customers.
— Regular reviews of the impact of Responsible Business
issues on our customers (see page 82 for
more information).
Value created in 2024/25
Board endorsement of:
— Continued transformation of our ranges to support
customers to make sustainable choices.
— Launch of marketplace in Castorama France and Poland.
— Customer clean air project in Poland to help customers
improve energy efficiency at home.
— Continued evolution of our store formats.
— Launch of initiatives to grow business with trade customers.
Priorities for 2025/26
— Expansion of e-commerce and marketplace.
— Enhancement of Screwfix App and Screwfix Sprint.
— Development of trade propositions across banners.
— Development of ranges to address evolving customer
needs and help them make sustainable choices.
— Continuing to focus on price in the economic environment.
Colleagues
Group engagement
— Engagement with colleagues by the business is set out
on pages 16 to 18.
Board engagement
— Regular board and individual director visits to our offices
and stores. In 2024, this included visits to: B&Q Local and
Screwfix City stores, head offices of Screwfix UK and
Brico Dépôt France.
— Review of progress against key metrics of culture
through both informal and formal mechanisms, including
a culture dashboard and continuous listening tool.
— Direct engagement through the Kingfisher Colleague
Forum (KCF), a joint forum of Kingfisher-nominated
management representatives and formally elected
employee representatives from across all banners and
Group Functions. As representative to the KCF, our
Senior Independent Director, with the CEO and CPO,
attended meetings where they discussed colleague
views on a range of topics. Colleague feedback is
presented to the Board twice a year. In 2024, this
included exploring how we can better engage colleagues
and build their confidence in our successful Artificial
Intelligence initiatives and also, Cyber Security. The KCF
discussed local impacts of recent Allyship internal
communications campaigns and the evolution of
our Responsible Business strategy beyond 2025.
— Analysis of the impact of Responsible Business issues on
our colleagues (see page 81 for more information).
Value created in 2024/25
— Board endorsement of key priorities for 2025/26 for the
People and Culture Plan.
— Employee net promoter score (eNPS) of 59, a 2-point
increase versus 2023, and 86% participation in the
summer 2024 engagement survey.
— Embedding the ‘Together. Stronger.’ campaign to
support in driving a culture of inclusivity and belonging.
— Introduction of paid breaks for UK store colleagues.
— Increase of 8% to the minimum hourly rate for B&Q
Customer Advisors from April 2024; one of the highest
rates in retail.
Priorities for 2025/26
— Support our leaders to drive growth and collaboration,
and bring our purpose to life.
— Further optimise our operating model to leverage our
scale and drive agility, efficiency and effectiveness.
— Deliver pay transparency.
— Continue to embed a culture where all colleagues
feel they belong, are engaged, feel connected to our
purpose, and can access the training and development
they need for the career they want.
1
5
3
7
4
8
2
6
7
8
Other Information
22 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Link to strategy
See Our strategy on pages 6 and 7.
1
5
3
7
4
8
2
6
Suppliers
Group engagement
— Review of analysis of data and insights from supplier
surveys conducted on an annual basis. In 2024,
this included a vendor engagement survey with
approximately 2,000 OEB and branded vendors.
— Supplier engagement on reducing carbon impact.
— Engagement with suppliers on our Code of Conduct
and Responsible Business strategy (including net zero).
— Conducting risk-based anti-bribery and corruption
due diligence, and supplier ethical risk assessments and
audits which include factory and production site visits.
— Reporting on our payment practices under the UK
Government’s Duty to Report Requirements.
— Continuous improvement on offer and sourcing
pricing conditions.
Board engagement
— Consideration of the impact of our climate ambitions
on suppliers, including responsible sourcing and climate
targets (see pages 28 and 82, respectively).
— Reviews of the outputs from the annual supplier surveys
for our OEBs and branded suppliers, and of OEB ranges
and 2025 product innovation and renovation plans,
focusing on sustainability and affordability.
— Board and Audit Committee updates on supply
chain resilience and exposure in the context of
geopolitical events.
— Annual review of the Modern Slavery Transparency
Statement and progress of implementation of the
Modern Slavery Action Plan across key areas of
the business and supply chain.
Value created in 2024/25
— Board endorsement of vendor decarbonisation targets,
as part of the company’s net zero 2030 targets.
— Board approval of the Modern Slavery
Transparency Statement.
— Supplier engagement survey response rate of 65%, a 3%
increase versus the 2023 Supplier engagement survey.
— Delivery of our sourcing ambitions. In 2024, this included
an increase of levels of OEB availability from 95% to 96%,
despite the Red Sea shipping crisis.
Priorities for 2025/26
— Continued focus on sustainability, including progress
withnet zero roadmaps and climate reduction plans,
andour approach to human rights.
— Offer transformation and innovation.
— Leverage data to drive operational efficiencies
andcollaboration with suppliers.
— Continue to monitor the impact of regulatory changes
onsupplier payment practices.
Investors
Group engagement
— Holding meetings on an ongoing basis; approximately
500 interactions with 300 institutional investors and
sell-side analysts on general business topics.
— Investor and analyst presentations, roadshows,
conferences, dedicated ESG roadshows, fireside chats
and interview series (including a net zero discussion),
international store tours attended as appropriate by
theCEO, CFO, Chair, Senior Independent Director
and Responsible Business team.
— Market disclosures, including results announcements,
trading updates and ad hoc updates.
— Engagement with ESG ratings agencies used by many
investors and debt providers to gauge sustainability
priorities and performance.
— Investor perception study to better understand investor
and analyst views on Kingfisher.
Board engagement
— Regular engagement by the CEO, CFO, and Chair with
investors, covering key financial announcements,
business performance and specific issues.
— Engagement by the Remuneration Committee Chair on
the company’s proposed Remuneration Policy which is
set out on pages 93 to 101.
— Regular feedback to the Board from investor roadshows
across four countries.
— Receipt of reports on investor and financial market
sentiment and expectations.
— Engagement with shareholders at Kingfisher’s 2024 AGM.
Value created in 2024/25
— Effective communication of company financial
performance, strategic progress and priorities.
— Board approval of an interim dividend of 3.80 pence per
share for the financial year ended 31 January 2025, and
a final dividend of 8.60 pence per share for the financial
year ended 31 January 2024.
— Consistent strong performance across priority ESG
ratings against the retail sector benchmark.
Priorities for 2025/26
— Deliver clear, concise and transparent communication
ofcompany performance and progress against
strategic priorities.
— Execute a comprehensive investor engagement plan,
including post-results management roadshows, fireside
chats and conferences.
— Strengthen engagement with investors through
delivery of new events and new means of communication
including through social media, Kingfisher A3 one-page
investment thesis and pre-results aide memoires.
— Broaden our investor base by targeting new pools ofcapital.
3
1
5
2
7
4
1
5
3
7
4
8
2
6
23Kingfisher 2024/25 Annual Report and Accounts
Communities and non-governmental
organisations (NGOs)
Group engagement
— Engagement with this stakeholder category is
predominantly undertaken in pursuit of our Responsible
Business priorities and therefore captured on page 27.
— Collaboration with organisations to develop the
inclusivity agenda, including the Business Disability Forum
and Stonewall, and to tackle modern slavery, including
partnering with the Slave Free Alliance.
— Collaborating with peers through the UN Global Compact
and the British Retail Consortium’s Climate Action Roadmap.
Board engagement
— Board and Responsible Business Committee reviews
ofprogress of our community programmes and
environmental work.
— Kingfisher’s membership of and engagement through
theCEO with the European DIY Retail Association and
theGlobal Home Improvement Network (EDRA/GHIN),
inparticular the taskforce for tackling Scope 3 emissions.
— Presentations from banners regarding community
initiatives are captured on page 82.
— Receipt of updates on community investments made
during 2024/25.
Value created in 2024/25
— Board approval of Scope 3 targets: net zero by 2050,
and 46% emission reduction by 2030.
— Board approval of charitable donations to B&Q
Foundation and Shelter, of which Kingfisher’s share
offunding was c.£2m in total.
— Progress on our Communities strategy is reported
on page 27.
— Increased colleague engagement scores on our
community work.
Priorities for 2025/26
— Continued focus on working towards net zero by 2050.
— Board monitoring of community investment and
endorsement of approach to Communities’ priorities.
— Transition into the new Responsible Business strategy.
— Mobilise colleague volunteering.
— Continue to engage our colleagues on our
community work.
Regulators and
government
Group engagement
— Direct engagement with the governments and regulators
in each of Kingfisher’s key markets as well as with
EU institutions.
— Engagement with retail trade associations, including the
British Retail Consortium, Eurocommerce, EDRA/GHIN,
the French DIY Retail Association, and business
associations such as AFEP (France) and Lewiatan (Poland).
— Attendance at government meetings and events,
responding to consultations, and participation in
parliamentary inquiries.
— Regular engagement with regulators, including, in the UK,
the Registrar of Companies, the Financial Reporting
Council, the London Stock Exchange, the Financial
Conduct Authority, and the Information Commissioner’s
Office on matters of statutory or regulatory compliance.
Board engagement
— Updates on company engagement with regulators,
government stakeholders, and political representatives,
both directly and via industry associations and
other partners.
— Receipt of twice-yearly updates on material political
issues impacting Kingfisher across its geographies,
including monitoring actions and next steps.
— Ongoing monitoring of macroeconomic and geopolitical
forces on performance.
— Updates on key governance and regulatory changes
thatmay impact the company.
— Response to policy consultations and formal
information requests.
Value created in 2024/25
Progress made on issues including:
— Engagement following elections in the UK, France and EU.
— Home energy efficiency government support in the UK,
France and Poland.
— Beginning of reform to skills policy in the UK.
— Late payments regulation.
Priorities for 2025/26
— Work with the UK Government alongside other retailers
to ensure shops do not pay higher business rates from
2026 onwards.
— Work in partnership with the UK Government on skills
policy as it is developed, and with governments in our
markets on rolling out home retrofit support measures.
— Continue to support initiatives to maintain a level playing
field across the retail sector in all our markets.
Stakeholder engagement continued
7
1
3
4
2
5
7
8
6
Link to strategy
See Our strategy on pages 6 and 7.
1
5
3
7
4
8
2
6
Other Information
24 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Non-financial and sustainability
information statement
Policy
1
and description Due diligence and key outcomes
More information on matters, due diligence and
key outcomes **
Environmental matters
Environmental Policy
The policy outlines the company’s commitments and the
actions being taken to address impacts on climate change,
biodiversity, nature and forests as well as waste management.
Environmental impacts, risks, and opportunities are assessed
in line with ISO 14001 principles and regulatory requirements.
KPIs are tracked and reported annually, withpolicy reviewed
each year.
— Performance against priorities:
pages 10 and 11
— KPIs: page 13
— TCFD: pages 44 to 46
— Responsible Business: pages 27 and 28
— Supplier engagement: page 23
— Principal risks: pages 61 and 64
Forest Positive Policy
This policy outlines our requirements to support our journey
tobecome Forest Positive through responsible sourcing,
avoiding deforestation and protecting and restoring forests.
All goods containing wood or paper must come from
responsible sources (recycled, FSC/PEFC wood with full
Chainof Custody). Vendors must submit supply chain data
toverify compliance.
Sustainable Packaging Policy
This policy outlines the requirements for our Own Exclusive
Brand products’ packaging.
Packaging sustainability data is collected regularly. OEB
vendors must provide accurate packaging information, and
may be audited through the Vendor Internal Packaging Audit
(VIPA) programme. The policy drives increased recyclability
and plastic reduction.
Chemicals Policy
The policy outlines how we control certain chemicals in our
OEB products through transparency, chemicals management,
and innovation.
Annual assessments and updates to ensure the policy’s
effectiveness in safeguarding health and the environment.
The policy drives an annual increase in product transparency
and share of products meeting SHP Chemical criteria.
Employees
Code of Conduct*
Our Code of Conduct summarises our approach to doing
business and the ethical standards we expect.
A description of the due diligence process is on page 29.
There were no material Code of Conduct breaches during
the year.
— Performance against priorities:
pages 10 and 11
— KPIs: page 13
— People and culture: pages 16 to 18
— Colleague engagement: page 22
— Responsible Business: pages 27 to 29
— Responsible Business Committee: page 81
— Principal risks: page 61
Equal Opportunities, Inclusion and Diversity Policy*
This policy outlines our commitments to foster inclusive
behaviours for all.
Diversity is monitored with set targets, supported by training
and clear procedures to report non-inclusive behaviours.
Health and Safety Policy*
This policy applies to all Kingfisher colleagues, third parties
andsites, and sets out the key measures and processes
tominimise the risk of harm.
Due diligence includes systematic risk assessments and
regular reporting. The policy drives improvement in
workplace safety.
Human Rights
Human Rights Policy
This policy states our commitment to respect human rights,
and our commitment to implement due diligence procedures
across Kingfisher and its supply chain.
Risk assessments identify and address human rights risks.
Supplier audits ensure compliance with ethical standards,
andgrievance mechanisms allow confidential reporting
ofconcerns. The policy ensures fair labour practices for our
colleagues and within our supply chain, and reduces the risk
of human rights violations.
— Supplier engagement: page 23
— Responsible Business: page 28
— Principal risks: page 64
Supply Chain Workplace Standards
This policy sets out the standards that we ask all companies in
our supply chain to comply with, in order to ensure respect for
human rights.
Regular ethical audits assess supplier compliance with
labour and environmental standards. Monitoring is supported
by platforms like Sedex, amfori BSCI, and EcoVadis.
The standards drive ethical sourcing and enhance
transparency across our supply chain.
Social matters
Community Policy
This policy outlines how we and our retail banners are seeking
to tackle poor and unfit housing across our markets.
We partner with registered charities and assess the impact of
community initiatives to ensure long-term positive change.
Invested £6 million in our communities with an additional
£2.7 million raised by our colleagues and customers.
— Responsible Business: page 27
— Responsible Business Committee: page 82
— Communities and NGO engagement: page 24
Anti-bribery and corruption
Anti-Bribery and Corruption Policy*
The policy sets out the key principles and processes in place
to prevent bribery and corruption across Kingfisher and its
supply chain.
Suppliers undergo ethical screening, and employees receive
anti-bribery training. A whistleblowing policy allows anonymous
reporting, and regular audits monitor compliance.
— Responsible Business: page 29
— Principal risks: page 63
— Audit Committee: page 86
Gifts and Hospitality Policy*
This policy outlines the process, rules on acceptance and
offering of Gifts and Hospitality.
Clear guidelines define acceptable gift and hospitality
thresholds. Pre-approval processes and gift registers
to ensure transparency and accountability.
Whistleblowing Policy*
This policy outlines the process for confidentially reporting
misconduct without fear of retaliation.
The confidential Speak Up platform allows anonymous
reporting, managed by an independent third party. Reports are
reviewed and investigated with regular oversight from the
Audit Committee. Colleagues receive training on the policy.
1. All policies, except for the Equal Opportunities, Inclusion and Diversity Policy and the Health and Safety Policy are available on the company’s website
kingfisher.com/responsiblebusinesspolicies.
* Policies marked with an asterisk are accessible to colleagues via the company’s intranet.
* * Further details on outcomes are available in our Responsible Business Report and Modern Slavery Statement on our website.
This statement is made in compliance with sections 414CA and 414CB of the Companies Act. TheGroup’s climate-related
financial disclosures have been prepared in accordance with the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD) and in compliance with the Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022
and these are included on pages 30 to 46. A description of the Group’s polices, the due diligence measures we undertake to
implement them and the results of applying these policies, are set out inthetable below.
For information on: Business model – see pages 14 and 15. Non-financial KPIs – see page 13. Principal risks and uncertainties – see
pages 60 to 65.
25Kingfisher 2024/25 Annual Report and Accounts
Operating as a Responsible Business
Kingfisher has been prioritising responsible practices across
all aspects of our business for over 30 years, and is aiming to
lead the industry in responsible business. Building on our strong
Environmental, Social, and Governance (ESG) credentials, and
as part of our ‘Powered by Kingfisher’ strategy, we integrate
responsible business into all our decision-making.
Responsible Business
Colleagues
Customers
Planet
Communities
Our commitment
We will be a more inclusive company by breaking down
barriers to employment and progression, and by
building skills for life.
Our commitment
We will help millions of customers have a greener, healthier
home – one that is energy efficient, comfortable, uses
fewer resources and is affordable to run and maintain.
Our commitment
We will help tackle climate change by reducing carbon
emissions from our business, products and supply chains.
We will work towards becoming Forest Positive through
our commitment to responsible sourcing and investing
in forest projects.
Our commitment
We will donate our products, expertise and time to help
people whose housing needs are greatest in the
communities we serve.
We will be a more inclusive company
We will help make greener,
healthier homes affordable
We will help tackle climate change and continue
our journey to become ForestPositive
We are striving for better homes for
everyone in our communities
Our four Responsible Business priorities
Now into our fifth year of delivery, we continue to make
progress across each of our four priority areas for Responsible
Business. We focus on where we believe we can use our
experience, scale and influence to deliver positive impact.
Looking ahead, we are developing the next iteration of our
strategy and targets, set to launch next year.
We will publish full details of this year’s progress in our dedicated
Responsible Business Report in June 2025.
See page 27 for details on our progress against the targets for our four
key priorities.
Other Information
26 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Key priorities Our targets Our progress
Colleagues
— Improve gender balance
to 35% women in senior
leadership and 40%
women in management
by 2025/26.
— Enable more than 20,000
colleagues to complete
anapprenticeship,
traineeship or formal
qualification by2030/31.
— 30.1% of senior leaders and 39.8% of managers are women, compared with 28.6% and 39.6%
respectively last year, reflecting continued progress towards our gender diversity targets.
— 38.5% of our Group Executive and their direct reports are women, compared with 36.1%
last year.
— Embedded our allyship campaign, ‘Together. Stronger.’ across all markets.
— 3,221 colleagues across the Group completed apprenticeships, traineeships and formal
qualifications, bringing the total to 8,248 since FY 23/24.
— Introduced our new e-learning platform, LEO, offering colleagues unlimited access
tothousands of online courses.
Engagement and inclusivity are part of our People and Culture Plan discussed onpages 16
to 18.
Planet
— Reduce Scope 1 and 2
emissions by 37.8% in
absolute terms, and
Scope 3 emissions by
40% per £m of turnover
(compared with FY 16/17
and FY 17/18
respectively).
— Reach net zero emissions
for our operations (Scope
1 and 2) by 2040/41.
— Purchase 100%
responsibly sourced
wood and paper for
ourproducts and
catalogues by 2025/26.
— Work towards becoming
Forest Positive
by 2025/26.
— Announced new net zero and interim science-based emissions targets as part ofthe next
stage of our Net Zero Climate Plan. See case study on page 28.
— Continued progress against our science-based targets and reduced operational emissions
(Scope 1 and 2) by 66% since 2016/17, exceeding our2025/26 target of 37.8%.
— Reduced absolute Scope 3 emissions from supply chain and product use by 30.4%, with a
delivered intensity reduction of 38.7% since 2017/18, ensuring we are on track to deliver
our FY 25/26 target.
— Announced new ambitious decarbonisation targets with suppliers to support ongoing
efforts to reduce Scope 3 emissions.
1
— 97.9% of the wood and paper used in our products was responsibly sourced (FY
23/24: 96.6%) and 100% of catalogue paper (FY 23/24: 99.9%).
— Continued to invest in six community forestry projects in key tropical sourcing regions
asafounding member of the Rainforest Alliance Forest Allies initiative. These cover some
190,000 hectares of community managed forests and contribute towards the protection of
more than 2,500,000 hectares of protected areas.
— Screwfix continued to work with the Woodland Trust, helping to restore, protect and plant
woodlands at Kingsettle, B&Q continued it’s support of the restoration project at Snaizeholme,
colleagues from Brico Dépôt France planted 3,000 trees in partnership with Reforest’Action
and Castorama Poland partnered with UNEP/Grid to restore Polish national parks.
Customers
— Attain 60% of Group sales
from our Sustainable
Home Products (SHP),
including 70% of sales
for our Own Exclusive
Brand products (OEB)
by 2025/26.
— 53.4% of total Group sales came from SHP that help create greener, healthier homes (FY
23/24: 49.4%).
— 9.8% of group sales were from energy-saving, energy-efficient and water-saving
products (FY 23/24: 10.1%).
— SHP now accounts for 63.3% of OEB sales (FY 23/24: 60.1%).
— Rolled out our Green Star mark across most banners, making it easier for customers to
navigate and shop for products with a lower impact on the environment. There are
currently over 10,000 Green Star SKUs including products such as LAP A-rated LED
bulbs, GoodHome water efficient taps and Verve Natural Woodchip mulch.
— Improved sustainability performance across many ranges, including the increased use of
recycled plastics and lower embodied carbon materials.
— Launched refurbished range on diy.com, expanded Screwfix refurb capabilities and grew
our rental services in Poland and UK.
— In FY 25/26, we will be aiming to increase SHP sales by introducing new ranges, including
recycled plastic plant pots and home furnishings, expanding supplier engagement in
adopting SHP criteria, and advancing lower-carbon metal sourcing.
Communities
— Having met our target to
help more than two million
people whose housing
needs are greatest, we
continue to report
on progress.
— Invested £6.0 million (FY 23/24: £6.1 million) in our communities, with an additional
£2.7 million (FY 23/24: £2.4 million) raised by our colleagues and customers.
2
— Strengthened our Communities strategy to focus on three areas: fix homes, share DIY
skills and provide emergency support.
— Castorama Poland and Brico Dépôt Romania have worked with children, sharing DIY skills
and preparing them for the future.
— B&Q continued to support Shelter to help improve living and working conditions, while
colleagues at Castorama France completed 70 solidarity actions for its Foundation.
— Announced new strategic partnerships between Brico Dépôt France Foundation and Les
Restos du Coeur and Brico Dépôt Iberia and Hogar Sí.
— Donated over £135,000 to disaster relief efforts across our geographies, including
responses to floods in Spain and Poland.
1. Kingfisher and its suppliers will work towards one of three levels of common targets, depending on the scale of their impact on Kingfisher’s Scope 3
emissions. The targets are: (i) for Kingfisher’s 100 biggest suppliers by Scope 3 emissions, to create a Science Based Targets initiative (SBTi)-aligned
roadmap and decarbonisation target by 2028; (ii) for the next 450 suppliers, to create an SBTi-aligned roadmap and decarbonisation target by 2030;
and (iii) for the remaining vendors, to set a climate reduction plan by 2030.
2. The community contributions include estimated management costs and time volunteered by colleagues.
27Kingfisher 2024/25 Annual Report and Accounts
Case study: Setting new science-based targets
As part of the next stage of our Net Zero Climate Plan
we have set new science-based emissions targets
across Scope 1, 2 and 3.
We aim to reduce absolute Scope 1 and 2 emissions by
68% by 2030 (from a 2016/17 base year) and to reach net
zero by FY 2040. For Scope 3, we aim to reduce absolute
emissions by 46% by 2030 (from a 2017/18 base year) and
to reach net zero across our value chain by FY 2050.
These targets have been submitted for validation by
the Science-Based Targets initiative (SBTi).
We have a detailed action plan in place to achieve these
targets, building on our strong track record of delivering
emissions reductions to date. This includes advancing
zero-carbon stores and decarbonising logistics, improving
product energy efficiency and phasing out fossil fuel
ranges, prioritising low-carbon materials/designs, engaging
vendors to reduce upstream emissions, and embedding
circularity through rentals and refurbishments. However,
the delivery of our net zero target also depends on
multiple external factors, including the sustainability of the
entire supply chain, the decarbonisation of in-country
grids, and supportive government policies.
This year we have further reduced our emissions, achieving
66% reduction in Scope 1 and 2, and 38.7% in Scope 3.
Page 20 sets out how the Board considered this decision in the
context of its responsibilities under Section 172 of the Companies
Act 2006 and the company’s main stakeholder groups.
We work with our suppliers to raise standards on the
environment, labour practices, and human rights in our supply
chain. Our due diligence includes ethical risk identification and
assessment processes, ethical audits with follow up corrective
action plans as necessary, supplier training and engagement, and
collaboration with human rights experts such as Slave-Free
Alliance, a victim-focused social enterprise.
We do not tolerate any form of modern slavery in our business
or supply chains. Our Modern Slavery Working Group, chaired
by our Human Rights Manager, oversees due diligence and
disclosure on human rights and modern slavery. It brings
together stakeholders from across the Group and banners
who are working on ethical sourcing issues.
For further details and performance datasee our Modern Slavery
ActTransparency Statement at www.kingfisher.com/Modern-Slavery.
Health and safety
We believe every colleague is entitled to a safe working
environment. The Group Head of Health and Safety provides
strategic leadership, supported by our banner heads of Health
and Safety, who collectively form a dedicated safety network.
Our Group Functions Health and Safety team also works closely
with a Risk Board and a Health & Safety Committee in each banner.
Health and safety performance is regularly monitored at multiple
levels of the Group. Our key health and safety performance
indicators were reviewed by the Group Executive three times
and by the Board twice in FY 24/25. We also publish our health
and safety performance data annually in our Responsible
Business Report.
Our new Health and Safety management reporting system has
improved visibility of performance, and we continue to improve
the accident reporting process.
Waste and chemicals
We are committed to achieving zero waste to landfill and
increasing recycling. In the UK, France and Poland, these
policy commitments are integrated into contracts with waste
management partners, and we regularly review progress.
We are also working to further reduce packaging waste.
We are committed to strict compliance with all applicable
regulations related to chemicals, and where we have identified
other chemicals that we consider are not sustainable, we are
starting to phase these out of our products. Our Chemicals team
collaborated with the Product Sustainability team to enhance
supplier transparency on product formulations, enabling us to
identify where they use substances considered of concern
to human health or the environment, and explore potential
alternative substitutes. In FY 24/25, we expanded and
consolidated chemical criteria in the SHP guidelines to include
non-formulated products and articles. Thisisto ensure our
chemical strategy going forward aligns with the regulatory
changes expected in the EU in the coming years.
Our Responsible Business fundamentals
Our priorities are underpinned by our commitment to our
Responsible Business fundamentals. These are the practices to
which we adhere to ensure we continue to operate responsibly
across our business.
For each fundamental we have a clear Group policy that
allows us to work effectively with key stakeholders across our
functions and banners to continually improve performance.
Responsible sourcing and human rights
We respect, protect and promote the human rights of our
colleagues, workers across our supply chain and others affected
by our business activities.
Our Human Rights Policy aligns with international agreements
and guidelines, including the United Nations Guiding Principles on
Business and Human Rights, the International Bill of Human Rights
(which includes the Universal Declaration of Human Rights), the
UN Global Compact, the International Labour Organization’s
Declaration on Fundamental Principles and Rights at Work, the
Children’s Rights and Business Principles, and UN conventions
on the elimination of discrimination.
Responsible Business continued
Other Information
28 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Ethical conduct
Our Code of Conduct summarises our approach to doing
business and the ethical standards we expect. It promotes
a culture of transparency, honesty and fairness.
Read more at www.kingfisher.com/responsible-business/our-policies/
company-policies.
The Code of Conduct applies to all Kingfisher colleagues and
third parties. We have supporting policies and an online approval
and reporting procedure for gifts and hospitality, conflicts of
interest, and a policy on competition law.
All colleagues are required to complete annual training on our
Code of Conduct. This covers the key principles of the Code
of Conduct and how to raise concerns. Colleagues working
in sensitive areas of the business or in higher-risk roles also
completed additional training on fair competition and market
abuse regulation.
Our Group Ethics and Compliance Committee is chaired by
our CFO and oversees compliance, identifies priorities, and
reviews compliance reports and investigations during its
quarterly meetings. Local ethics and compliance committees
in each of our banners provide ongoing support and insight.
We use a third-party due diligence tool to support our processes
in areas such as anti-bribery and corruption, data protection,
sanctions and conflict of interest. We operate a confidential
whistleblowing hotline. The Board and Audit Committee receive
regular updates about whistleblowing reports as well as the
outcome of sensitive internal investigations.
For more information see page 86 of the Audit Committee report.
All suppliers must comply with our Code of Conduct, and we
embed its requirements into our procurement processes and
supplier contracts. Potential new suppliers must factor in our
Code of Conduct and ethical requirements.
Our approach to data protection and cyber security is explained in the
risk section on page 63.
Responsible Business governance
Our Responsible Business Committee (RBC) met three times
this year to support and oversee the delivery of the Responsible
Business agenda, ensuring it is integrated into our governance
and is robust, transparent and accountable. This includes
monitoring and appraising performance against our four priority
areas, and providing the Group Executive and Board with
frequent support and advice on all aspects of Responsible
Business. The Chair of the RBC reports on the Committee’s
activities to the plc Board at least twice a year.
Further governance of climate-related risks and opportunities
isdetailed on page 31 in our response to the Task Force on
Climate-related Financial Disclosures.
Kingfisher has an ongoing £650m three-year revolving
credit facility with a group of our relationship banks, which
was refinanced in May 2024. The facility includes targets linked
tosustainability metrics.
Environmental, social and governance disclosure
We disclose our ESG progress and performance through
several external benchmarks, including CDP (formerly the
Carbon Disclosure Project) and the Workforce Disclosure
Initiative (WDI). We align our reporting to the Global Reporting
Initiative (GRI), Task Force on Climate-related Financial
Disclosures (TCFD) (see page 30) and the Sustainability
Accounting Standards Board (SASB) standards for Multiline and
Speciality Retailers and Distributors. Our disclosures also meet
the Companies (Strategic Report) (Climate-related Financial
Disclosure) Regulations 2022 amended sections 414C, 414CA
and 414CB of the Companies Act 2006. See our Non-financial
and sustainability information statement on page 25.
We closely monitor emerging regulatory and reporting
requirements, including the EU Corporate Sustainability
Reporting Directive (CSRD) and UK Sustainability Reporting
Standards (SRS), and are aligning our practices to be able to
meet these and future ESG reporting requirements.
See page 81 for the Responsible Business Committee report and
www.kingfisher.com/responsible-business for more information.
29Kingfisher 2024/25 Annual Report and Accounts
Our response to the Task Force on
Climate-related Financial Disclosures
At Kingfisher we are committed to decarbonising our business in line with climate science, and being transparent about the impacts,
risks and opportunities that climate change poses to our business. In line with UK Listing Rule 6.6.6(8)R, Kingfisher plc is required to
disclose, on a comply or explain basis, its consistency with the recommendations of the Task Force on Climate-related Financial
Disclosures (TCFD). Kingfisher is also in scope of the Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations
2022, and therefore required to incorporate Climate-related Financial Disclosures (CFD)-aligned climate disclosures in its Annual
Report and Accounts. We have prepared our disclosures in accordance with TCFD and in full compliance with the FCA and
CFD requirements.
We consider our disclosure to be consistent with the TCFD recommendations and recommended disclosures, and have summarised
this in the TCFD alignment index below.
TCFD alignment index
TCFD pillar Recommended disclosures Disclosure status
(comply/explain)
Link to information/Kingfisher response
Governance a) Describe the board’s oversight of
climate-related risks and opportunities.
Comply
— Governance section page 31 – Board-level oversight of
climate-related risks and opportunities (role of GCC, GIC,
and banner boards).
b) Describe management’s role in
assessing and managing climate-related
risks and opportunities.
Comply
— Governance section page 32 – management’s role
in assessing and managing climate-related risks
and opportunities.
— Governance section page 33 – TCFD governance structure
(infographic).
Strategy a) Describe the climate-related risks
and opportunities the organisation has
identified over the short, medium,
and long term.
Comply
— TCFD strategy section (our climate-related risks and
opportunities) page 34 – Time horizons – description and
rationale for selection.
— TCFD strategy section page 35 – our approach to
climate scenario analysis.
b) Describe the impact of climate-
related risks and opportunities on the
organisation’s businesses, strategy,
and financial planning.
Comply
— TCFD strategy section page 36 - results of scenario
analysis.
— Page 34 – additional impacts of climate-related risks and
opportunities on our strategy and financial planning.
— Page 35 – our approach to climate scenario analysis.
c) Describe the resilience of the
organisation’s strategy, taking into
consideration different climate-related
scenarios, including a 2°C or
lower scenario.
Comply
— TCFD strategy section page 35 – Our approach to climate
scenario analysis.
— Pages 36 to 41 - Table 1: results of scenario analysis.
Risk management a) Describe the organisation’s
processes for identifying and
assessing climate-related risks.
Comply
— TCFD risk management section page 42 – processes for
identifying and assessing climate-related risks.
b) Describe the organisation’s
processes for managing
climate-related risks.
Comply
— TCFD risk management section page 42 – processes for
identifying and assessing climate-related risks.
— Page 42 – Kingfisher’s processes for managing climate-
related risks.
c) Describe how processes for
identifying, assessing, and managing
climate-related risks are integrated
into the organisation’s overall
risk management.
Comply
— TCFD risk management section page 42 – processes for
identifying and assessing climate-related risks.
— Page 42 – Kingfisher’s processes for managing climate-
related risks.
Other Information
30 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
TCFD pillar Recommended disclosures Disclosure status
(comply/explain)
Link to information/Kingfisher response
Metrics and targets a) Disclose the metrics used by the
organisation to assess climate-related
risks and opportunities in line with its
strategy and risk management process.
Comply
— TCFD Metrics and targets section – page 42 – metrics for
assessing climate-related risks and opportunities.
— Page 43 - Table 2: Kingfisher metrics and targets for
identified climate-related impacts.
— Page 44 – executive remuneration.
b) Disclose scope 1, scope 2, and, if
appropriate, scope 3 greenhouse gas
(GHG) emissions, and the related risks.
Comply
— Page 44 – Table 3: our greenhouse gas emissions and
energy use data.
— Page 44 – Table 4: five-year performance and baseline
comparison.
c) Describe the targets used by the
organisation to manage climate-related
risks and opportunities and
performance against targets.
Comply
— Page 43 – Table 2: Kingfisher metrics and targets for
identified climate-related impacts.
— Page 46 – Table 6: progress on climate-related targets.
A description of the external assurance of our climate-related financial disclosures can be found in the independent auditors’
report to the members of Kingfisher plc on page 131. In addition, our GHG emissions and associated energy data for Scope 1 and 2
(market-based) as well as categories 1.1 and 11.1 of our Scope 3 GHG emissions are subject to annual independent assurance
(ISAE 3000 limited assurance). The assurance statement with details on the scope and conclusion of the work will be published
in our 2024/25 Responsible Business Report.
Governance
Board-level oversight of climate-related risks and
opportunities [TCFD Governance (a)]
The governance of climate-related risks and opportunities
is integrated into our overarching Kingfisher governance
framework. A visual representation of our governance
framework is provided in the corporate governance
statement on page 70.
Our Board of Directors is our highest governing body and
assesses the management of principal risks and opportunities,
including climate change, and reviews our Responsible Business
key performance indicators (KPIs) and our external climate
change targets on a quarterly basis. The Board reviews our
Responsible Business long-term plan twice a year, which in
FY 24/25 included reviewing and approving our new 2030 and
net zero science-based targets and supporting delivery plans.
The Board also reviews and approves our annual Responsible
Business Report which includes detail on our progress to date
for climate-related metrics and targets.
Our CEO is accountable for overseeing the delivery of our
energy and climate change commitments across the Group, with
climate-related responsibilities sitting within various Board and
management committees as follows:
— Our Group Executive is responsible for identifying, assessing
and managing the principal risks, including climate change, and
for reviewing and recommending to the Board on an ongoing
basis key climate-related commitments and transition plans
proposed by management. This includes our Scope 1, 2 and 3
net zero commitments and investment plans.
— Our Responsible Business Committee is a committee of
the Board and provides collective support and advice to
the Group Executive and Board on all matters relating to
responsible business practices (including climate change).
The Responsible Business Committee met three times in
2024 and its report is on page 81.
— Our Group Climate Committee, chaired by our
Chief Executive Officer, meets quarterly with relevant
management to monitor the company’s approach to
meeting its climate commitments and assessing climate-
related risks and opportunities. It has oversight of the
company’s approach to developing and delivering its net
zero roadmap and related supporting targets. It provides
an update to the Group Executive on key decisions and
actions. In 2024, this included development of new 2030
science-based targets across all scopes, and our new net
zero target for Scope 3.
— Our Group Investment Committee is directly accountable
for all capital and revenue expenditure above the threshold
reserved for approval at the banner or Group Function level.
Energy-related capital investments, which are fully aligned
with our Scope 1 and 2 emissions reduction targets, are
included in the Committee’s remit if investment needed
exceeds the required threshold levels for review. In 2024,
this included approving costs for a smart LED rollout and
upgrades across 35 of our B&Q stores.
— Our Audit Committee is a committee of the Board and
receives updates from management on Kingfisher’s
compliance with changing sustainability-related mandatory
reporting requirements, including our TCFD disclosures.
Internal audit undertakes audits of the ESG landscape as
part of its annual plan.
Additionally, banner boards consider their responsible business
strategies and climate programmes. They are responsible for
implementing the energy-related capital investments approved
by the Group Investment Committee, for delivering progress
against our Scope 1 and 2 emissions reduction targets, and for
approving the commercial considerations behind net zero
transition plan delivery. In FY 24/25, banners continued to report
on their net zero roadmap development (across Scope 1, 2 and
3) and progress on target delivery through a net zero dashboard.
The dashboard is reported to the Group Climate Committee and
Group Executive.
31Kingfisher 2024/25 Annual Report and Accounts
Information on how our Board engages with stakeholders,
including in relation to climate change, is included in our
stakeholder engagement section on pages 22 to 24.
Management’s role in assessing and managing climate-
related risks and opportunities [TCFD Governance (b)]
The day-to-day assessment and management of climate-
related risks and opportunities is conducted through several
senior management positions and operational teams. Climate-
related decisions and actions from the Board and Committees
noted above are cascaded to these teams where relevant:
— Our Responsible Business team, led by our Director of
Responsible Business, is accountable for developing
Group-wide climate change strategy, climate-related
risk and opportunity identification and assessment, and
for external and internal reporting and communication
on climate-related matters to the Board and Board
committees. The Responsible Business team agrees the
agendas for the Responsible Business Committee and
Group Climate Committee with the respective committee
chairs, prioritising updates or decisions on key areas of
Kingfisher’s climate strategy as necessary. This ensures
that management communicates to relevant governing
bodies on an ongoing basis.
— Within the Group Offer & Sourcing function, a
Sustainability team is responsible for driving our Sustainable
Home Products (SHPs) strategy, ensuring our product
sustainability requirements are embedded into our own
exclusive brand (OEB) product ranges, and collaborating
with OEB suppliers to reduce their own emissions. The
sustainability team reports its progress on actions, including
progress on Scope 3 emissions reduction planning and
supplier engagement, to the Group Climate Committee.
It also runs a monthly Sustainability Forum with banner
sustainability directors and representatives to help
co-ordinate sustainability activity across the Group,
including Scope 3 product-related emissions reductions.
— Each banner is responsible for delivering Scope 1, 2 and 3
emissions reductions, in line with the contributions of each
banner identified under the Group-wide Scope 1, 2 and 3
science-based targets, and reporting on progress. Banners
have their own Responsible Business committees and
forums with relevant director representatives (from banner
teams and partnering Group Functions such as Responsible
Business) that are used to update and grant approval where
required on banner climate transition plans.
— The ESG and Climate Disclosure Steering Group is
chaired by our Director of Responsible Business. It meets
a minimum of six times a year and includes participation
from different Group Function directors and
representatives (including finance, legal, internal audit and
risk, responsible business, and the banners). The Steering
Group provides guidance on transition planning and
reporting and helps to ensure that these activities are fully
integrated into Kingfisher’s strategic and financial planning
processes. The Steering Group also inputs on relevant
updates taken to the Group Climate Committee.
— The Corporate Reporting Oversight Group meets at least
twice annually and monitors compliance with Kingfisher’s
mandatory corporate reporting obligations and the regulatory
Our response to the Task Force on Climate-related Financial Disclosures continued
landscape for upcoming changes or amendments to these
obligations, which include but are not limited to the Group’s
climate-related compliance and disclosure requirements.
— The Climate Transition Plan Working Group meets on
a fortnightly basis and brings together the climate leads
from our banners and relevant Group Functions (such as
finance, property, logistics and risk). The objective of the
working group is to act as a central point of co-ordination
for the development of Kingfisher’s climate transition plan,
ensuring consistency in transition plan development and
risk management across all our banners.
— The Logistics Net Zero Forum is chaired by the Group
Logistics Director and meets quarterly with banner logistics
directors and representatives to share best practice,
discuss new technology and share carbon reduction
planning and activity across logistics.
— The Energy Forum is chaired by the Group Head of Energy
and meets quarterly with banner energy and property
managers to share best practice across banners, review
net zero Scope 1 and 2 activity plans and report on progress
against targets.
Enhancing our governance of climate-related risks
and opportunities
We are committed to building climate-related capabilities across
the Group, and continue to monitor where further knowledge
and expertise on climate change-related matters is required
across the Group. We have reviewed competencies at the
Board level and have concluded that the Board consists of
members who bring in the necessary climate-related expertise.
This is achieved through the Chair of Kingfisher’s Responsible
Business Committee also being a non-executive director (NED)
on the Board. We also have two new NEDs appointed to the
Board this financial year who bring climate-related experience
from their respective executive careers in the development
and implementation of sustainability strategies, as well as
being board members of companies which have implemented
sustainability strategies.Lucinda Riches is currently chair of
Greencoat UK Wind, the leading listed renewable infrastructure
fund, invested in UK wind farms, and in her executive career at
UBS she chaired the Global Equity Commitments Committee,
overseeing the firm’s capital and reputational commitments.
During his six years as CEO at DFI Group, Ian McLeod played an
instrumental role in developing the company’s sustainability
strategy and mission focused on serving communities;
sustaining the planet; and sourcing responsibly.
Our CEO chairs our Group Climate Committee, so is updated
regularly on climate-related activities across the Group.
Our CEO is also the President of the European DIY Retail
Association (EDRA)/the Global Home Improvement Network
(GHIN) and has been engaged with launching the Global Retail
Scope 3 Taskforce, founded in 2023 by EDRA/GHIN to drive
collaboration and innovation across the industry in reducing
Scope 3 emissions. Our banner teams have been fully engaged
with our climate transition plan development, with banner board
level approval for banner-specific Scope 1, 2 and Scope 3
delivery plans. Progress updates are also held regularly
through the banner Responsible Business forums and
net zero dashboard reporting.
Other Information
32 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Strategy
Our strategy for identifying climate-related risks and
opportunities is informed by our risk management processes
(see Risk management on page 42), of which our use of climate-
related scenario modelling and analysis is a key component.
Where material, we consider climate-related risks and
opportunities within our strategy development and financial
planning. As part of our commitment to responsible business
practices, all our retail banners have their own net
zero roadmaps and associated cost estimates in place and
are required to integrate climate transition plan costs into the
annual long-term financial planning process. Climate change
and its associated targets (see Metrics and targets section) is
an integral part of our Responsible Business strategy which in
turn is a pillar of our commercial strategy.
This year, we have enhanced our scenario analysis modelling to
ensure a stronger alignment with our internal risk management
processes and financial reporting, and to continue improving our
climate-related disclosures. We have also engaged extensively
with subject matter experts across the business to validate that
our risk calculation methodologies are tailored to Kingfisher’s
specific needs. This has involved several key changes in our
modelling approach, including the adoption of a percentage
impact on revenue (based on impact to sales or costs from
climate risks and opportunities) as the materiality metric
for risk assessment, replacing the previous use of cumulative
discounted cash flow. We have also shifted to assessing net risk,
where appropriate to do so, to reflect the delivery of mitigation
actions included within our climate transition plan programme
and supporting our science-based targets. Last year we used
gross risk only (i.e. with no mitigation actions taken into account).
Net risk has been applied to the following risks and opportunities
modelled in this year’s report; liability, carbon pricing, consumer
preference, and resource efficiency. Table 1 on pages 36 to 41
outlines the key modelling assumptions used to calculate risks
and opportunities.
These changes have provided a clearer picture of where the
risks and opportunities lie and their business impact; they have
also generally resulted in a lower relative overall financial risk
impact. We have also updated the methodology behind our risk
calculations to better align with our business operations, and
included more information on quantifying opportunities, as
well as risk. Where significant changes have been made to
our modelling assumptions, we have noted these in the key
modelling assumptions column within Table 1 on pages 36 to 41
(detailed later in this section).
The Kingfisher plc Board
Audit Committee
Our Board
committees
Operational
committees
Responsible Business Committee
Group Climate Committee
ESG &
Climate
Disclosure
Steer Co
Logistics
Net Zero
Forum
Energy
Forum
Banner
Responsible
Business
forums
Sustainability
Forum
Climate Transition Plan Working Group
Group Executive
Working Group representation is made up of members from the above forums
Implementation
and compliance
1
Strategic
oversight
Climate governance structure
1. Kingfisher employs a number of mechanisms to monitor and prepare for compliance with its mandatory corporate reporting obligations, including
climate-related compliance and wider disclosure requirements (note that only climate-focused groups are shown in the governance structure above).
33Kingfisher 2024/25 Annual Report and Accounts
Our climate-related risks and opportunities [TCFD Strategy (a, b)]
We have defined risk time horizons of near term (0-3 years), medium term (3-9 years), and long term (10+ years). This is to reflect
the long-term nature of climate-related risks. We currently model risks until 2040 through our climate-related scenario modelling
outlined below.
The timelines considered and rationale for selecting them have been provided in the table below.
Time horizon Description Rationale for selection
Near term 0-3 years (2024 - 2027) Our near-term risk horizons consider the chance of events creating risk exposure over
the next three years which is consistent with the Group’s strategic planning period and
the period over which the principal risks are considered.
Medium term 3-9 years (2027 – 2033) This time horizon was selected to capture emerging transition risks and opportunities,
such as carbon taxes and emerging regulations in the geographies we operate in.
Long term 10+ years (2034 onwards) Our long-term horizon is influenced by our strategies and targets related to climate
change such as our net zero targets (net zero by 2040 for Scope 1 and 2 and net zero
by 2050 for Scope 3).
As many climate-related physical and transition risks are likely to materialise over a longer
term than usual business planning-related risks, selecting this time horizon enables us to
consider and discuss the potential climate risks and opportunities relevant for us (and
capturing the range of uncertainties related to such risks in the long term), while also
aligning with relevant long-term global standards and targets. This also covers the
long-term investment needed for our climate transition planning.
To guide our disclosure of climate-related risks and
opportunities, we define materiality based on risk severity levels
according to the results of our scenario analysis (see Table 1 on
pages 36 to 41).
New risks and opportunities modelled this year include
thefollowing:
— Last year, we quantified consumer preference as a
transition risk, if considered with no climate transition
planning mitigation in place (i.e. gross risk). After
incorporating more of our sustainable product data into the
calculations, and considering our climate transition plan, we
have determined that this risk may provide a commercial
opportunity and differentiated offer for Kingfisher.
— We have included an additional physical risk on market
disruption caused by extreme weather conditions changing
consumer purchasing habits in our scenario modelling this
year, as these were identified as material risks by the
business, given the impact on demand for seasonal products.
— As we aim to reduce our overall energy and carbon
emissions in line with our science-based targets and
transition plan (further details on our performance against
these targets and metrics for the current year have been
provided on page 46), we have identified energy efficiency
as an additional opportunity, and have incorporated it into
this year’s TCFD report.
Additional impacts of climate-related risks and
opportunities on our strategy and financial planning
[TCFD Strategy (b)]:
Leading the industry in responsible business and energy
efficiency is a key component of our ‘Powered by Kingfisher’
strategy, and we are working to integrate responsible business,
including climate change related impacts, into all aspects of
ourbusiness.
Our ‘Powered by Kingfisher’ strategy sets out four priority areas
for responsible business where we can maximise our positive
impact on the lives of our customers, colleagues, communities,
and the planet (see page 26). Climate change sits within our
‘planet’ pillar and is closely linked to our ‘customer’ pillar which
aims to help millions of customers have a greener, healthier
home through increasing sales of our Sustainable Home
Products (SHP).
Our climate transition plan is built to deliver our science-based
emissions reduction targets which include achieving net zero
Scope 1 and 2 emissions by the end of 2040, and net zero for
our Scope 3 emissions by 2050 (see Metrics and targets section
page 42 for more details). We have also set ambitious targets for
our Sustainable Home Products (SHP) that help create greener,
healthier homes, aiming to reach 60% of Group sales by FY
25/26.
We consider the implications of climate-related risks in our
financial planning processes. This includes climate capital
allocation budgets such as decarbonisation costs to deliver
on zero-carbon energy programmes being reviewed by our
banners as part of our annual strategic planning process.
Climate-related targets are also built into our executive
remuneration approach (see Metrics and targets section
for details on page 44).
We also have a £650m three-year revolving credit facility with a
group of our relationship banks, which was refinanced in May 2024.
The facility expires in May 2027 and includes targets linked to
sustainability metrics, including our Scope 1 and 2 targets, and
Sustainable Home Products (SHP) sales targets, which would
enable us to access lower interest rates.
Our management approach with regards to how we continue
to build and maintain our strategic resilience through ensuring
holistic governance has been detailed further in the Governance
section on page 31.
Our response to the Task Force on Climate-related Financial Disclosures continued
Other Information
34 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Our approach to climate scenario analysis
[TCFD Strategy (a, c)]
We continue to expand our capabilities and understanding
of climate-related risks and opportunities that impact or can
potentially impact our business. We do this through a third-party
facilitated scenario modelling and analysis, which has been an
important tool to assess the Group’s strategic and financial
resilience to a range of alternative climate futures.
Our scenario modelling capabilities allow us to better understand
the exposure of our business to various climate-related risks
1
and impacts across the value-chain. This enables us to identify
appropriate mitigation measures and regularly review and assess
the resilience of our business and strategy against these risks
and overall net zero plans.
Our scenario modelling approach considers climate-related
risks globally, and the results indicated in the table below are
presented as global values. We assessed operational risks to
our value chain at a country geographic level, aligned to our key
markets. We determined that some regions were more exposed
to physical phenomena from heatwaves and flooding, and
certain regions were more exposed to transition risks due to
having more stringent public policies covering carbon emissions.
We continue to monitor these risks on an ongoing basis to
identify any further mitigation actions required in the future
(see Table 1 for additional details).
Climate-warming scenario pathways
Global temperature increase* Scenario description
1.5°C Paris Ambition: The net zero scenario aims to limit global warming to 1.5°C by 2100 through stringent, immediate
climate policies and innovations, achieving net zero CO
2
emissions by 2050. Linked to RCP1.9-2.6 and SSP1-1.9-2.6,
it involves significant early transition risks but minimizes physical risks. This urgent global policy response aligns
with the Paris Agreement’s ambition, leading to rapid changes in energy generation, consumer behaviours, and
technological innovation. While physical risk increases are limited, transition risks remain high.
2.5°C Stated Policy: This scenario follows historical social, economic, and technological trends, with the world taking
action to limit emission growth but failing to cut emissions in the short term, thus missing the Paris goals. It is linked
to SSP2-4.5 and would result in approximately 2.5°C or greater warming by 2050, mitigated by carbon sequestration
and storage (CSS). This scenario involves several physical risks and transition risks after 2030. It reflects the
implementation of stated climate policies and commitments without further action, leading to medium levels of
physical and transition risks in the short term, with increasing physical risks over time. This is considered an
intermediate scenario according to the IPCC Sixth Assessment (AR6) report.
>4°C No further policy action: This scenario assumes that only currently implemented policies are maintained, with no
further global action on climate change. Emissions continue to grow, leading to 2.5°C of warming by 2050 and over
4°C by 2100, causing irreversible changes. Linked to SSP5-8.5, it involves minimal early transition risks but results in
severe and globally disruptive physical risks. Physical risks increase significantly over time, while transition risks
remain low.
* Average global surface temperature increase above pre-industrial levels by 2100.
1. Risks can be associated with the physical impacts of climate change (i.e. extreme weather events or long-term shifts in precipitation and temperatures), or
with the transition to a lower-carbon global economy (e.g. policy and legal actions, technology change, market responses, and reputational considerations).
Our scenario analysis considers the implications of a full range of
emissions trajectories and global average temperature increases.
For FY 24/25, we modelled three climate-warming scenario
pathways as explained below.
Climate scenario analysis
A variety of sources were used to conduct the climate scenario
analysis, including Network for Greening the Financial System
(NGFS) V4.0, International Energy Agency (IEA) World Energy
Outlook 2023, and Intergovernmental Panel on Climate Change’s
(IPCC) Sixth Assessment Report (AR6) – Model Intercomparison
Project Phase 6 (CMIP6) dataset. We assessed the shortlist of
material risks and opportunities against the following scenarios
over short, medium, and long-term time horizons, as
definedabove.
While not designed to provide precise forecasts, the chosen
scenarios deliver scientific projections of possible future
macroeconomic and environmental states by analysing key
global trends and data inputs, such as regulatory impacts and
consumer behaviour. The three scenarios were specifically
chosen because they capture the greatest range of
climateuncertainties.
35Kingfisher 2024/25 Annual Report and Accounts
We have used a revenue or cost percentage to quantify the
impact of risks and opportunities in our scenario modelling
approach, which aligns with our risk management framework.
We have modelled the impacts of the six most material risks
for our business over three, five and ten plus year periods
(as described above). The risks considered in our scenario
analysis are modelled independently, reflecting the complexity
and uncertainty associated with measuring the interconnectivity
of risks.
The impacts have been rated as ‘limited’, ‘minor’, ‘moderate’,
‘major’ or ‘severe’ to reflect the relative financial materiality of
each risk under each scenario. The impact thresholds are aligned
with the risk management thresholds in our risk management
framework. For the purposes of modelling, we have not applied
any pass-through assumptions (e.g. passing risk-based costs
onto the customer via mark-ups or recuperating costs through
reduced purchases/cost efficiencies).
The results of our analysis are reported to our ESG & Climate
Disclosure Steering Group and Group Climate Committee, to
ensure cross-functional and Executive-level decision making
on the management of climate-related risks and opportunities.
Further information around the governance on climate-related
risks and opportunities has been provided in the TCFD
Governance section on page 31.
Scenario analysis results [TCFD Strategy (c)]
The financial impacts identified in Table 1 below reflect the
estimated impact from climate change across our defined time
horizons. This allows comparison of different risks, whether
physical or transition, within a standard framework. A qualitative
strategic response and mitigation actions implemented across
the business for each risk and opportunity have been included
in the scenario results below. These measures are intended to
build the operational, regulatory, and supply chain resilience of
our business to climate change impacts.
Table 1: Results of scenario analysis
Key: potential materiality impact on Kingfisher based on percentage of revenue.
Type of risk/
opportunity
Limited Minor Moderate Major Severe
Impact on revenue <2.5% of revenue 2.5%-5.0% of revenue 5.0%-7.5% of revenue 7.5%-10.0% of revenue >10% of revenue
Impact on cost <0.25% of revenue 0.25%-0.50% of revenue 0.50%-0.75% of revenue 0.75%-1.0% of revenue >1.0% of revenue
Note: For the time horizons in Table 1, 3 years = near term, 5 years = medium term, 10 years = long term, as described in the timeline
descriptions on page 34.
Our response to the Task Force on Climate-related Financial Disclosures continued
Other Information
36 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Table 1: Results of scenario analysis continued
The table below outlines the key modelling assumptions used to calculate risks and opportunities. Net risk, which assumes we deliver
our climate transition plan actions and targets, has been applied where relevant. This is indicated in the ‘key modelling assumptions
column’ along with notes on where there have been methodology amendments from last year’s scenario modelling results.
Climate-related
risk modelled
Key modelling assumptions Impact on sales/cost (see key above for
materiality impact)
Implications for resilience and
strategic response/mitigation
actions
1. Transition risk:
Liability risk
Increased costs
of compliance
with a growth in
climate-related
regulations and
frameworks.
i. Reviewed as a net risk with
costs calculated based on
assumed compliance with
climate related regulation.
ii. Kingfisher long term projected
growth rates used as a proxy
to extrapolate current legal
spend out to 2040.
iii. Carbon price growth rate
used as a proxy to extrapolate
ESG compliance-related legal
spend out to 2040 as this is
viewed as the most mature
regulation-based climate
metric.
iv. Rate of decarbonisation
measured using the rate
at which UK/EU emissions
intensity reduces used as
a proxy to extrapolate out
responsible business spend
out to 2040. This was utilised
as a proxy as it is expected
that the market and Kingfisher
will need to spend more
in order to align with
and contribute to the
decarbonisation in
these economies.
Note: Methodology approach has
been amended from last year which
previously looked at the gross risk of
climate-related litigation. This risk has
therefore decreased in magnitude
compared with last year.
1.5°C 2.5°C >4°C Potential financial implications:
— Increased costs of compliance
with a growth in climate-related
regulations and frameworks.
This calculation assumes KF will
be compliant with regulations
and would not incur any
penalties or financial losses
arising from non-compliance.
Strategic response/
mitigationactions:
— We will continue to monitor
the regulatory landscape and
ensure that new legislative
requirements are identified and
flagged with sufficient time to
plan compliance-related work,
which will enable effective
management of the required
mitigation actions within
our business.
— Through the ESG and Climate
Change Disclosure Steering
Group, we have strong
governance and robust planning
processes in place to meet
regulatory requirements in
a timely manner.
3-year
impact
Limited No impact No impact
5-year
impact
Limited Limited Limited
10-year
impact
Limited Limited Limited
37Kingfisher 2024/25 Annual Report and Accounts
Climate-related
risk modelled
Key modelling assumptions Impact on sales/cost (see key above for
materiality impact)
Implications for resilience and
strategic response/mitigation
actions
2. Transition risk:
Carbon pricing
Increased cost
of carbon driven
by policies/
regulations.
i. Reviewed as a net risk with
costs calculated based on
assumed carbon reduction
in line with Kingfisher’s
transition plan.
ii. Assume the 2023/24
emissions mix and markets
remains static over the
reporting period.
iii. Scope 1, 2 and 3 emissions are
assumed to decrease in line
with Kingfisher’s forecast
linked to our climate transition
plan targets.
iv. Model focuses on the
compliance carbon market i.e.
carbon taxes and emissions
trading systems (ETS),
including geographical
coverage. Carbon Border
Adjustment Mechanism
(CBAM)
1
impact is also included
for the first time this year.
v. Scope 1, 2 and upstream
Scope 3 have been
considered. For these
emissions, the industry
carbon price by operating
country has been applied.
vi. Scope 3 downstream
emissions (which relate largely
to customer product use) have
not been included due to
incomplete data to assess
carbon pricing on this emission
type and the impact this would
have on customer purchasing.
1.5°C 2.5°C >4°C Potential financial implications:
— Increased costs of raw materials
as suppliers may potentially pass
through carbon costs of raw
materials-related emissions
(upstream Scope 3 emissions)
to the buyer.
— Potential increased operational
costs (Scope 1 and 2) due to
carbon costs of direct emissions.
Strategic response/
mitigationactions:
— A key element of our strategic
response to reduce and/or
manage any carbon pricing-
related policy risks is through
continued monitoring of
regulatory and market
developments that further
inform our Responsible Business
strategy and financial planning.
— We have a strong track record in
reducing our own emissions and
are collaborating closely with
our suppliers to ensure we are
driving positive change. For
example, through commitment
to generating 60% of Group
sales from SHPs by end of
FY 25/26, a co-benefit will be
reduction of carbon emissions
embodied within certain SHP
ranges (e.g. through selecting
more sustainable materials) and/
or emitted when our customers
use and dispose of our products
(e.g. through providing more
energy efficient products).
— A key pillar of our Responsible
Business strategy is our
commitment to reducing our
emissions in line with the UN’s
goal to limit global warming to
1.5 degrees (see Metrics and
targets below).
— We would expect policy
risk to increase if we included
downstream Scope 3 elements.
Further analysis will be needed
to assess the impact of this risk.
3-year
impact
Minor Minor Limited
5-year
impact
Moderate Moderate Limited
10-year
impact
Moderate Moderate Limited
1. The Carbon Border Adjustment Mechanism (CBAM) is an EU regulation impacting the import of high carbon products into the European Union.
Our response to the Task Force on Climate-related Financial Disclosures continued
Other Information
38 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Climate-related
risk modelled
Key modelling assumptions Impact on sales/cost (see key above for
materiality impact)
Implications for resilience and
strategic response/mitigation
actions
3. Transition risk:
Reputation risk
Decreased
revenue if
consumers move
to competitors
they perceive
to be more
sustainable.
i. Reviewed as a gross risk
based on Kingfisher not
implementing climate
transition plans or meeting
climate-related targets
which then shifts customer
perception to perceive
competitor retailers to
be more sustainable.
ii. % of climate conscious
customers who purchase
products from more
environmentally sustainable
companies. The climate
conscious customers’ demand
is determined by emissions
intensity between Kingfisher’s
banner and its peers.
Note: Methodology approach has
been amended from last year which
previously looked at the gross risk of
reputational damage due to climate
activism against Kingfisher. This
risk has therefore decreased in
magnitude compared with last year.
1.5°C 2.5°C >4°C Potential financial implications:
— Reduced revenue if consumers
switch to competitors,
perceiving our business as less
sustainable than its peers.
— Risk will tend to be higher in the
net zero scenario if peers are
decarbonising at a faster rate
than Kingfisher, as customers
may boycott more carbon
intensive businesses.
— On a gross risk basis, reputation
risk is anticipated to have limited
impact on Kingfisher. With
successful implementation
of our transition plan and
attainment of our emissions
targets, we would anticipate
an opportunity.
Strategic response/
mitigationactions:
— A key pillar of our Responsible
Business strategy is our
commitment to reducing our
emissions in line with the UN’s
goal to limit global warming to
1.5 degrees (see Metrics and
targets below). We actively
manage our climate transition
plan and are continuing to
disclose our progress against
plan (including through voluntary
disclosure such as CDP).
3-year
impact
Limited Limited Limited
5-year
impact
Limited Limited Limited
10-year
impact
Limited Limited Limited
4. Physical risk:
Key facility
disruption risk
Increased cost
due to frequency
and intensity of
extreme weather
events, which may
cause damage
to facilities.
i. Reviewed as a gross risk as
any local adaption measures
such as flood protection
across our estate have not
been accounted for (this is
something we will look to
review next year).
ii. Kingfisher-owned and leased
stores and distribution centres
are included in the analysis,
other facilities such as offices
are excluded.
iii. Assumes that damage to
facilities and operational
disruption will be covered
by insurance.
iv. Insurance premiums are
expected to increase over
time, in line with the financial
damage forecasted without
insurance coverage.
1.5°C 2.5°C >4°C Potential financial implications:
— The most material impact is
expected due to flooding at
high-risk stores. However,
the damages are estimated to
be covered under insurance
therefore the final results are
lower, showing the impact of
increased insurance premiums.
Strategic response/
mitigationactions:
— We maintain robust continuity
planning and insurance
programmes.
— Additionally, we incorporate
climate change factors into
the planning and design of new
stores, refurbishment projects
and preventative maintenance
programmes. For example,
in certain locations, we have
implemented location-specific
adaptations, such as painting
store roofs white to aid natural
cooling in our Brico Dépôt
stores in France and Spain.
— We also run preventative
maintenance programmes
for stores and facilities
previously impacted by
extreme weather events.
3-year
impact
Limited Limited Limited
5-year
impact
Limited Limited Limited
10-year
impact
Limited Limited Limited
39Kingfisher 2024/25 Annual Report and Accounts
Climate-related
risk modelled
Key modelling assumptions Impact on sales/cost (see key above for
materiality impact)
Implications for resilience and
strategic response/mitigation
actions
5. Physical risk:
Raw material
supply risk:
Timber supply
chain
Increased costs
due to changes in
the global climate
which impact the
availability of raw
materials, such as
wood and paper.
i. Reviewed as a gross risk
where the impact of wildfire in
a given region has been used
to directly correlate to an
increase in raw material price.
ii. The scope of raw materials
covers 60+ species of wood,
increasing the scope of last
year’s report which was limited
to three species.
iii. The baseline price of timber
increases with the fraction of
the forest area that is exposed
to wildfires, i.e. there is a direct
correlation between wildfire
exposure and timber price.
Note: Methodology approach has
been amended to focus just on the
impact of climate-related wildfires on
wood and paper supply in order to
provide more consistent modelling
assumptions. Last year’s report
reviewed the impacts on climate
related temperature and
precipitation. This risk has increased
in magnitude compared with last year.
1.5°C 2.5°C >4°C Potential financial implications:
— Changes in the global climate
leading to wildfires will likely
impact the availability of
high-quality supplies of certain
wood species. This may affect
wood and paper prices and
increase costs for Kingfisher.
Strategic response/
mitigationactions:
— We will continually review
key suppliers by category to
establish capacity and volumes
and assess the impact of an
interruption in supply. Our
supplier strategy includes
guidance on when to use more
than one supplier to increase
resilience. Risk is monitored
regularly via our Timber Forum.
3-year
impact
Limited Limited Limited
5-year
impact
Limited Limited Limited
10-year
impact
Limited Limited Limited
6. Physical risk:
seasonal products
Decreased
revenue due to
fluctuations in
seasonal weather
patterns, which
affect the demand
for seasonal
products.
i. Reviewed as a gross risk as
climate transition plans are
not directly related to
seasonal products.
ii. Quantify the footfall and the
impact of seasonal products
revenue loss due to increased
precipitation during the
summer and warmer
winter weather.
iii. Seasonal products are
categorised by Kingfisher’s
product category framework.
1.5°C 2.5°C >4°C Potential financial implications:
— Revenue loss increases over
time, with the highest impact
occurring in the ‘No Further
Policy Action’ scenario (>4°C),
however the risk across all of
these remains ‘limited.’
Strategic response/
mitigationactions:
— Focusing on driving online sales
through marketing can combat
reduced footfall.
— Review adapting seasonal
product ranges to reflect
changing climate patterns.
3-year
impact
Limited Limited Limited
5-year
impact
Limited Limited Limited
10-year
impact
Limited Limited Limited
7. Transition
opportunity:
Resource
efficiency
Decreased cost
due to moving
away from carbon
intensive sources.
i. Reviewed as a net opportunity
where reduction in gas
consumption aligns with
Kingfisher’s net zero delivery
plan across banners.
ii. The energy costs for
Kingfisher in the year 2023
are projected forwards using
factors that predict how much
energy prices will increase
by due to various climate-
related scenarios.
iii. Carbon tax has not been
included in calculations as
this is included in carbon
policy risk.
1.5°C 2.5°C >4°C Potential financial implications:
— Cost savings associated with
moving away from and reducing
the volume of more expensive
and carbon-intensive sources of
energy (e.g. lowering emissions
intensity within operations,
moving to more energy efficient
buildings, and heating
electrification).
Strategic response/
mitigationactions:
— Continued transition to
renewable energy sources.
— Considering more on-site
energy generation
where feasible.
3-year
impact
Limited Limited Limited
5-year
impact
Limited Limited Limited
10-year
impact
Limited Limited Limited
Our response to the Task Force on Climate-related Financial Disclosures continued
Other Information
40 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Climate-related
risk modelled
Key modelling assumptions Impact on sales/cost (see key above for
materiality impact)
Implications for resilience and
strategic response/mitigation
actions
8. Transition
opportunity:
Consumer
preference
Increased revenue
due to consumers’
purchasing
behaviours shifting
towards more
sustainable
products.
i. Reviewed as a net opportunity
based on the continued sale
of SHP and Green Star
rated products.
ii. Assumes the 2023/24 product
mix and markets remain static
and Kingfisher growth rate was
used to grow the sales. Scope
of review included Green Star
rated products and products
scoring A+ and A in our
Sustainable Home Product
(SHP) guidelines as these
products have the highest
sustainability criteria and
potentially more likely to
have customer focus.
iii. Modelling assumes different
consumer uptake in
sustainable products based
on product type (e.g. energy
saving or water saving).
iv. The model assumes there is a
potential opportunity for the
growth of sustainable products
to offset the lost sales of less
sustainable products.
Note: Methodology approach has
been amended from last year which
previously excluded the potential of
sustainable product growth offsetting
the lost sales of less sustainable
products. This riskhas now changed
to a commercial opportunity.
1.5°C 2.5°C >4°C Potential financial implications:
— Consumers’ purchasing
behaviours are shifting towards
more sustainable products,
which creates a risk of
decreased sales for products on
the SHP watch list. Conversely,
there is an opportunity for
increased sales of Green Star
products and other sustainable
products (categorised as SHP A
and A+).
Strategic response/
mitigationactions:
— We have established a headline
target to achieve 60% of Group
sales from SHP products by the
end of FY 25/26 (and 70% from
our SHP OEB products and
services) – see page 46 for our
progress against these targets.
Our Green Star products help to
make greener, healthier homes
more affordable and can
support the delivery of national
net zero targets. We are also
taking action to reduce the
embodied carbon in our product
ranges, in line with our Scope 3
carbon targets.
— Continue to expand our energy
saving product ranges across
our banners to support
customers in reducing
household energy costs and
emissions (e.g. schemes such as
the B&Q Energy Saving Service
in the UK (launched in 2022), and
the Clean Air Programme in
Castorama Poland (launched in
2023) which aims to improve
thermal insulation and reduce
energy consumption and
sources of air pollution in
houses aged 10 years or more.)
3-year
impact
Limited Limited Limited
5-year
impact
Limited Limited Limited
10-year
impact
Minor Minor Limited
Our scenario analysis results do not currently identify any significant impacts on our business model over the three-year time horizon
assessed, and therefore no changes in strategy are required beyond those already being implemented to decarbonise our business
in line with limiting global temperature increases to 1.5°C. The risk associated with policy (carbon pricing) has a greater impact on
costs compared to other risks and this is the only risk which sees ‘moderate’ risk level over five and ten year time horizons. This
increase in carbon pricing risk is due to the costs of carbon driven by policy and regulation increasing under 1.5°C and 2.5°C warning
scenarios. We will continue to expand our use of scenario analysis to test our resilience to climate-related risk, and to inform our
strategic and financial planning, in line with the TCFD recommendations. Based on our assessment, we believe that our current
strategy is resilient to the impacts of climate change, however we are continuing to monitor this over the medium and long-term
and will take appropriate actions.
The alignment of the scenarios discussed above, and the assumptions and sensitivities identified in Table 1, with our financial
statements, is described on page 153.
41Kingfisher 2024/25 Annual Report and Accounts
Risk management
The process and steps we follow to identify, assess and manage
climate-related risks are integrated into Kingfisher’s overall risk
management framework to ensure consistency of approach.
At the same time, we recognise that climate change also presents
opportunities for us to create value for our stakeholders and
differentiate ourselves in the market. Further disclosure relating
to our consideration of any climate-related opportunities is
included in the strategy section on page 33.
Processes for identifying and assessing climate-related
risks [TCFD Risk Management (a, c)]
To identify our risks and opportunities we conduct climate
scenario modelling testing on an annual basis. This enables us
to identify any new or emerging risks that we need to include
within our risk management process. All climate-related risks and
opportunities are assessed annually and included in our Group
Responsible Business risk register managed by the Responsible
Business team.
We also use the annual scenario modelling exercise to assess
our risks. This year, we undertook a detailed scenario analysis
exercise and modelled a total of six climate risks, covering
physical and transition risks. These risks were then incorporated
into our Group Responsible Business risk register and assessed
according to their likelihood of occurrence and their potential
financial, legal, business continuity and/or reputational impacts.
Using five different impact levels, and five different likelihoods,
enables us to plot each risk on a 5 x 5 matrix. The location of
a risk on this matrix determines the risk severity level. This
is similar to the process followed for other Group business
risks and enables us to prioritise climate-related risks and
opportunities. It also helps us determine their relative strategic
significance when compared to the other Responsible Business
risks and Group risks.
The risk process at Kingfisher uses a three-year outlook,
however recognising the long-term nature of climate-related
risk, we have developed a climate specific risk matrix within
the Responsible Business risk register which reviews risk on
near-term (0-3 years), medium-term (3-9 years) and long-term
(>10 years) time horizons. Our Group-level climate-related risks,
including existing and emerging regulatory requirements related
to climate change, are identified and assessed as part of our
annual review of our Group Responsible Business risk register.
Scrutiny on the validity and reliability of our response to
climate-related risks continues to increase each year. This
means that we need to constantly focus on ensuring that our
approach and efforts to reduce our greenhouse gas emissions
in line with climate science are robust and stand up to changing
external expectations. Climate change continues to be a
principal risk in FY 24/25. A full description of our principal risks,
setting out their link to Kingfisher’s strategic priorities and how
these risks are assessed, can be found on pages 60 to 65. Our
analysis does not currently identify any significant impacts on
our activities over our three-year planning horizon. However,
if climate change solutions are not effective, this will have
longer-term negative consequences for our strategy and affect
our ability to serve our customers, including challenging our
product availability, supply chain, reputation and cost to operate.
Kingfisher’s processes for managing climate-related risks
[TCFD Risk Management (b, c)]
To manage and monitor our risks we review every risk across all
severity levels (‘limited’, ‘minor’, ‘moderate’, ‘major’ or ‘severe’),
including existing and emerging regulatory requirements related
to climate change (e.g. carbon pricing risk within our scenario
analysis), within the Group Responsible Business climate risk
register, and develop mitigation management plans as required.
This approach reflects the inherent uncertainty in how climate-
related risks and opportunities may impact our business in the
future. Our approach to managing each identified climate-
related risk and opportunity (as identified from our scenario
modelling process) is included on Table 1 on pages 36 to 41. Our
climate risks and opportunities linked to scenario analysis are
also reviewed annually by our ESG and Climate Disclosure
Steering Group.
As climate change is considered a principal risk, we have
procedures in place and follow a similar process as for other
business principal risks. The Group Climate Committee monitors
and assesses the company’s approach to assessing climate-
related risks and opportunities and the Group Executive and
Board review the nature, likelihood and impact of the Group
principal risks annually along with any changes since the previous
review. This includes reviewing the mitigating actions to ensure
that these risks are proactively managed.
Within the business, each banner and Group Function is
responsible for implementing appropriate actions and having
controls and procedures in place to manage and monitor their
identified risks and to verify that the controls operate effectively.
For example, climate-related risks in relation to raw materials for
our OEB products in the supply chain are managed by our Offer
& Sourcing team responsible for buying goods for resale.
Metrics and targets
We continually review our climate change metrics and targets to
ensure that we are providing the information the business and
our stakeholders need to effectively monitor our performance
against our climate-related commitments, and our progress in
building resilience against different climate-related risks identified.
Metrics for assessing climate-related risks and
opportunities [TCFD Metrics and Targets (a, b)]
We have identified and established specific metrics, as indicated
in Table 2 below, to assess and monitor the most significant risks
and opportunities arising from climate change.
Detailed performance data for these metrics and progress
achieved against the targets, along with historical data for
comparative purposes, has been provided on page 46.
Our response to the Task Force on Climate-related Financial Disclosures continued
Other Information
42 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Table 2: Kingfisher metrics and targets for identified climate-related impacts [TCFD Metrics and Targets (a, c)]
Climate risk identified Target Metrics Methodology, any key estimates/assumptions or
changes from previous year
1
Transition risks
Liability
— N/A — Increased costs. — Reviews increased costs of compliance with
a growth in climate-related regulations and
frameworks. Methodology outlined on
page 37.
— We remain committed to disclosing against
our climate-related targets and building on
our disclosure for net zero transition planning.
Carbon-pricing
— Deliver our science-based
targets for FY 25/26 to reduce
Scope 1 and 2 emissions by
37.8% in absolute terms
(from a 2016/17 baseline).
— Reduce Scope 3 emissions
by 40% per £m of turnover
(from a 2017/18 baseline)
1
.
— GHG emissions – Scope 1,
2 and 3.
— Absolute, market-based, Scope 1 and 2 GHG
emissions in the financial year for Kingfisher
Group. Follows the GHG protocol. Limited
Assurance on Scope 1 and 2 emissions by
a third-party.
— Scope 3 includes emissions from purchased
goods, upstream distribution and our
customers’ use and consumption of products
sold by us (note downstream customer
emissions were not modelled in the scenario
analysis due to incomplete data to assess
carbon pricing on this emission type).
Follows GHG protocol. Further details on
www.kingfisher.com/datamethodology.
Reputational
— N/A — Reduced revenue. — We also monitor performance on climate
change through external disclosure
benchmarks, including the CDP Climate
Change Disclosure Initiative. In FY 24/25 our
CDP disclosure score was A- (FY 23/24: A-).
Physical risks
Key facility disruption
— N/A — Increased costs. — Methodology outlined on page 39.
Raw material supply
— 100% responsibly sourced
wood and paper for our
products and catalogues
by 2025/26.
— Quantity of Responsibly
Sourced Wood And
Paper Products (Number
And Percentage of
Skus Purchased).
— Details on our methodology for calculating
these targets (responsibly sourced wood
and paper) can be found in our Responsible
Business Data Collection Methodology
(www.kingfisher.com/datamethodology).
Seasonal weather
— N/A — Reduced revenue. — Methodology outlined on page 40.
Opportunities
Consumer preference
— 60% of Group sales to be
from our Sustainable Home
Products (SHP) that help
create greener, healthier
homes, including 70% of sales
for our Own Exclusive Brand
(OEB) products by FY 25/26.
— % of total Group sales
from SHP.
— % of total Group sales
from OEB products.
— Details on our methodology for calculating
these targets (sales from our Sustainable
Home Products) can be found in our
Responsible Business Data Collection
Methodology (www.kingfisher.com/
datamethodology).
Resource efficiency
— Deliver our science-based
targets for FY 25/26 to reduce
Scope 1 and 2 emissions by
37.8% in absolute terms
(from a 2016/17 baseline).
— GHG emissions – Scope 1,
2.
— Absolute, market-based, Scope 1 and 2 GHG
emissions in the financial year for Kingfisher
Group. Follows the GHG protocol. Limited
assurance on Scope 1 and 2 emissions
verified by a third-party.
1. Our current science-based targets run to FY 25/26. We have set new interim 2030 targets which are being verified by the SBTi.
Our metrics have been developed with consideration to the cross-industry, climate-related metric categories described in the TCFD
implementation guidance table A2.1. We will continue to review this guidance. We currently only calculate the TCFD-recommended
metrics most relevant to our business and the climate-related risks and opportunities identified in Table 1 on pages 36 to 41. We do
not currently use an internal carbon price, but this continues to be an area that we review annually.
In addition to the metrics for the climate-related risks indicated above, we are also aware of the climate-related implications
associated with aspects such as energy, water and waste, and have put corresponding metrics in place for managing and
monitoring our performance in these areas. Further information on these topics and our performance in FY 23/24, as well as
comparative data for previous years, have been provided as part of the Responsible Business Performance Data Appendix at
www.kingfisher.com/dataappendix.
43Kingfisher 2024/25 Annual Report and Accounts
Executive remuneration [TCFD Metrics and Targets (a)]
Our latest Remuneration Policy applicable for the executive directors (as approved at the 2022 AGM), includes the Kingfisher
Performance Share Plan which is also used for our senior leadership population (approximately 300 roles). The performance
conditions currently attached to awards made under this plan include a basket of three ESG measures, aligned to our Responsible
Business agenda. One of these measures is ‘Climate Change’, specifically ‘reductions in Scope 1 and Scope 2 carbon emissions’. The
target range attached to awards has been developed taking into account our science-based targets detailed below. Currently, the
basket of ESG measures accounts for vesting of up to 25% of awards made under the plan, with each ESG measure weighted equally
within the basket. A new Remuneration Policy is being put for approval at the 2025 AGM. There is minimal change proposed from the
current Policy, including its operation: climate change remains part of the basket of ESG measures. For more detail see pages 93 to
101.
Table 3: Our greenhouse gas emissions and energy use data [TCFD Metrics and Targets (b)]
2024/25 2023/24 (restated)
Metric Unit Global UK only
Global
(excl. UK) Global UK only
Global
(excl. UK)
% change
(global)
Scope 1 tCO
2
e 83,581 55,519 28,062 91,295 62,042 29,253 -8.4%
Scope 2 – location based tCO
2
e 94,743 31,930 62,813 92,167 33,849 58,318 2.8%
Scope 2 – market based tCO
2
e 11,374 626 10,747 10,763 812 9,951 5.7%
Total Scope 1 and 2 – location based tCO
2
e 178,324 87,449 90,875 183,462 95,891 87,572 -2.8%
Total Scope 1 and 2 – market based tCO
2
e 94,955 56,146 38,809 102,059 62,854 39,205 -7.0%
Carbon footprint (market-based)
per m
2
of floor space kgCO
2
e/m
2
11.8 16.0 8.5 12.9 17.1 9.5 -8.5%
Total energy consumption GWh 871 498 374 953 558 395 -8.6%
Total energy intensity kWh/m
2
108.2 142.2 82.1 120.4 156.4 90.8 -10.1%
The figures may not add up due to rounding.
We have restated our 2023/24 Scope 1 and baseline figures to reflect a change in our logistics calculation methodology following a
review of our level of operational control considering, vehicle ownership, route planning, vehicle and fuel choices. This has resulted in
the reclassification of certain third party managed logistics emissions to Scope 3, in line with the GHG Protocol.
Table 4: Five year performance and baseline comparison [TCFD Metrics and Targets (b)]
Metric Unit 2024/25
2023/24
(restated) 2022/23 2021/22 2020/21
2016/17
(restated)
baseline
% change
against
baseline
Total energy consumption GWh 871 953 1,111 1,230 1,139 1,284 -32.2%
Total Scope 1 and 2 – market based tCO
2
e 94,955 102,059 138,930 214,256 205,767 279,620 -66.0%
Carbon footprint (market-based)
per m
2
of floor space kgCO
2
e/m2 11.8 12.9 17.7 27.9 26.7 37.8 -68.8%
Carbon footprint (market-based)
per £ million turnover tCO
2
e/£m 7.4 7.9 10.6 16.3 16.9 26.1 -71.5%
Methodology
We calculate our greenhouse gas (GHG) emissions in line with the GHG Protocol: Corporate Accounting and Reporting Standard.
The CO
2
e includes the seven main greenhouse gases that contribute to climate change: carbon dioxide (CO
2
), methane (CH
4
),
nitrous oxide (N
2
O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF
6
) and nitrogen trifluoride (NF
3
).
We use the CO
2
e emission factors published annually by the UK Government (DESNZ). The data, as of 2024/25, is calculated using
the ‘2024 UK Government GHG Conversion Factors for Company Reporting’, version 1.1 (expiry 10 June 2025). We record activity
data (e.g. electricity consumption, gas consumption) and multiply with the relevant emission factors. Our Scope 1 emissions cover
the combustion of fuels, while our Scope 2 emissions account for the purchase of electricity and heat for our own use. For Scope
2 market-based emissions, we use a combination of conversion factors according to the data hierarchy (as defined under the WRI/
WBCSD GHG Protocol). We obtain supplier-specific emissions factors where available and use national residual mix emission factors
published by the Association of Issuing Bodies (European Residual Mixes 2023, Version 1.0, 30 May 2024).
Our response to the Task Force on Climate-related Financial Disclosures continued
Other Information
44 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
We collect and consolidate energy use data from our stores, offices, and other buildings, using Automated Meter Readings (AMRs) or
invoice data. Where data is unavailable, we estimate usage through pro-rata calculations or by applying average energy consumption
per m² from similar sites. Our property energy data covers energy used in stores, offices and other buildings (e.g. distribution centres
or data centres) that are owned or leased by us where we have operational control of the energy use. Energy use data includes the
combustion of fuels, the purchase of electricity and heat by Kingfisher for its own use. Kingfisher reports energy consumption data
in GWh as it is not practical for us present the data in KWh. We continue to evaluate ways to align.
We use an operational control boundary, in line with the operational control approach as defined by the WRI/WBCSD GHG Protocol.
We include emissions from our wholly-owned subsidiaries. For our Koçtaş joint venture, as we do not have full operational control,
we include proportional emissions under Scope 3 (category 15, investments). Kingfisher does not carry out any activities within the
UK offshore areas therefore this is not covered by the disclosure.
Our data covers our material Scope 1 and 2 impacts: emissions from property energy use and operationally controlled delivery fleets.
We calculate both our market-based and our location-based emissions from electricity consumption. Our carbon reduction target is
based on the market-based emissions.
We report energy consumption and GHG emissions on a calendar-year basis, which differs from our financial reporting period used
in the Directors’ report, as it allows additional time for data collection, verification, and quality assurance. We are working towards
aligning this with our financial year in the future. Detailed information on the scope of the data and the methodologies used to
calculate our data are explained in our Responsible Business Data Collection Methodology document.
In line with the SECR (Streamlined Energy and Carbon Reporting) requirements, we report our emissions and energy use split
between the UK and other countries. UK emissions account for 59.1% of global market-based emissions and UK energy use accounts
for 57.1% of total energy use. Carbon footprint and energy intensity calculations are based on total floor area of occupied properties.
8,049,914 m
2
in FY 24/25 (FY 23/24: 7,916,231 m
2
).This is because a significant component of our direct environmental impact derives
from our property portfolio.
In FY 24/25, we continued to improve energy efficiency in our operations through key measures, such as optimising heating, cooling,
and lighting controls, installing LED lighting, replacing gas heating with electric Air Source Heat Pumps (ASHPs), and expanding on-site
renewables to reduce reliance on grid power. We have transitioned to all-electric heating at over 800 properties with ASHPs and
invested in renewables, including biomass boilers and solar PV. These are in line with the three-year energy reduction plans for each
banner (key energy efficiency measures in FY 23/24 included installing LED lighting, optimising existing heating, cooling, and lighting
controls, replacing gas heating systems with ASHPs, and installing on-site solar PV system).
Since FY 16/17 our energy intensity has decreased by 37% due to continuous energy efficiency efforts, including those outlined above.
Our overall energy consumption in FY 24/25 decreased year-on-year by 9% and has reduced by 32% since our FY 16/17 baseline.
In FY 24/25, 92% of our electricity came from zero-carbon and renewable sources, supported by Renewable Energy Certificates.
Table 5: Selected Scope 3 GHG emissions data [TCFD Metrics and Targets (b)]
Metric Unit 2024/25 2023/24 2022/23 2021/22
2017/18
baseline
Scope 3 GHG Emissions: Category 1.1 – purchased goods
and services tCO
2
e 3,305,152 3,117,463 3,415,939 3,589,851 3,838,277
Scope 3 GHG emissions: Category 11 – use of soldproducts tCO
2
e 14,008,171 13,640,218 15,618,779 17,658,668 21,032,118
Scope 3 GHG emissions tCO
2
e 17,313,323 16,757,681 19,034,718 21,248,519 24,870,395
Scope 3 footprint per £ million turnover tCO
2
e/£m 1,354.30 1,291.04 1,457.59 1,611.81 2,210.42
The table above only covers selected Scope 3 GHG emissions used in our SBTi targets from use of sold products and upstream
Scope 3 GHG emissions from purchased goods for resale and services. Our total Scope 3 footprint with a detailed category-wise
breakdown as per GHG protocol will be published in our Responsible Business Performance Data Appendix in June 2025.
Targets for managing climate-related risks and opportunities [TCFD Metrics and Targets (c)]
We use several climate-related targets for managing climate-related risks and opportunities identified below in Table 6.
Our targets have been developed with consideration to the cross-industry, climate-related metric categories described in the TCFD
implementation guidance table A2.1. The targets described below have been established as they are most relevant to our business
and the management of our material climate-related risks and opportunities.
Additional information, including performance summary and progress against our targets, will be disclosed in our Responsible
Business Performance Data Appendix for FY 24/25.
45Kingfisher 2024/25 Annual Report and Accounts
Table 6: Progress on climate-related targets
Target Performance Variance in current year vs.
interim target
Reach net zero emissions for our operations
(Scope 1 and 2) by the end of 2040/41
Performance: On track
We have reduced absolute Scope 1 and 2 emissions by
66.0% since 2016/17. We are currently exceeding our
2025 target and are on track to reduce emissions by
90% by 2040.
32.2 ppts higher performance
for Scope 1 and 2 compared to
interim target.
Reduce Scope 1 and 2 market-based emissions by 38%
in absolute terms by 2025/26, compared to 2016/17
(science-based targets)
Performance: On track
We have reduced absolute Scope 1 and 2 emissions
by 66.0% since 2016/17. We are currently exceeding
ourtarget.
32.2 ppts higher performance
for Scope 1 and 2 compared to
interim target.
Reduce Scope 3 emissions by 40% per £million
turnover by 2025/26, compared to 2017/18
Performance: On track
We have reduced our Scope 3 emissions intensity
from the supply chain and customer use of products
by 38.7% since 2017/18.
3.7 ppts greater intensity
reduction than interim target.
100% responsibly sourced wood and paper for our
products and catalogues by 2025/26
Performance: On track
97.9% of wood and paper in our products was
responsibly sourced (2023/24: 96.6%) and 100%
of catalogue paper.
Products: -0.1 ppts performance
against interim target.
Catalogues: target met.
60% of Group sales to be from our Sustainable Home
Products by 2025/26, including 70% of sales for Own
Exclusive Brand (OEB) products
Performance: On track
53.4% of our total Group sales came from SHP in
2024/25 (2023/24: 49.4%). For our OEB ranges,
we achieved 63.3% (2023/4: 60.1%).
Group: 0.4 ppts higher
performance than interim target.
OEB: 0.3 ppts higher
performance than interim target.
Our science-based emissions reduction targets
We are currently delivering our near-term targets across Scope 1, 2 and 3 (for FY 25/26), which are aligned with the methodologies of
the Science Based Target initiative (SBTi). In 2024/25 we have also set new science-based near-term targets for 2030 and net zero
targets which we have submitted to the SBTi for validation. These include:
— By 2030, Kingfisher aims to reduce absolute Scope 1 and 2 emissions by 68% (from a 2016/17 baseline), and absolute Scope 3
emissions by 46% (from a 2017/18 baseline).
— Kingfisher aims to reach net zero emissions across Scope 1 and 2 by 2040 and across Scope 3 by 2050.
Each of our targets has been developed in line with our operational control reporting boundary, meaning that we assess 100% of
emissions from Kingfisher’s banners where we have the full authority to introduce and implement operating policies. We continue to
be on track to meet our emissions reduction targets and our priority remains to maintain this progress to meet our new targets and
ensure a strong foundation to be able to achieve our long-term net zero transition.
Much work has been done this year to develop and deliver our climate transition plan. This has included work across our banners
to reduce Scope 1 and 2 emissions, including trialling the electrification of stores and energy efficiency measures, and moving to
alternative fuels within our logistics fleet. For example, B&Q conducted a series of energy efficiency trials to find ways to reduce
our carbon footprint such as installing light sensors in 17 stores, resulting in an energy saving of 30%. In Castorama Poland we saved
2,085 tonnes of CO
2
in one year by transporting 96% of our containers from ports to distribution centres by train rather than road.
For Scope 3 we have also expanded our work with our suppliers and are working with Manufacture 2030 who are supporting us in
calculating and reducing our carbon footprint. Over 493 of our suppliers (including over 600 supplier facilities) have joined
Manufacture 2030’s Low Carbon Manufacturing Programme (LCMP) to date.
We also continue to promote cross-sector climate action through a new collaborative task force, initiated by EDRA/GHIN (the
global trade bodies for home improvement retailers), to help our sector reduce its Scope 3 emissions. The task force will find more
consistent, simpler ways to help home improvement retailers measure our emissions, and learn from each other, to drive down our
value chain emissions as fast as possible.
Our progress against these targets for the current year, and whether we are on track with our expected performance, has been
outlined in the Table 6 above.
We do not currently use carbon offsets to claim progress against any of our emissions-reduction targets. In line with the SBTi’s
definition of net zero, once we have reduced emissions by at least 90%, we will neutralise the remaining emissions through the
removal of carbon from the atmosphere following SBTi guidance on the use of carbon credits. We continue to closely monitor
guidance on the use of carbon offsets.
Our response to the Task Force on Climate-related Financial Disclosures continued
Other Information
46 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Financial review
A summary of the reported financial results for the 12 months ended 31 January 2025 is set out below.
Financial summary 2024/25 2023/24
% Total change
(reported)
% Total change
(constant) % LFL change
Sales £12,784m £12,980m (1.5)% (0.8)% (1.7)%
Gross profit £4,763m £4,776m (0.3)% +0.5%
Gross margin % 37.3% 36.8% +50bps +50bps
Operating profit £407m £580m (29.7)%
Statutory pre-tax profit (PBT) £307m £475m (35.4)%
Statutory post-tax profit £185m £345m (46.5)%
Statutory basic EPS 10.1p 18.2p (44.7)%
Net cash flows from operating activities £1,302m £1,321m n/a
Total dividend 12.40p 12.40p –
Adjusted metrics
Retail profit £696m £749m (7.0)% (6.6)%
Retail profit margin % 5.4% 5.8% (40)bps (30)bps
Adjusted pre-tax profit (PBT) £528m £568m (7.0)%
Adjusted post-tax profit £381m £415m (8.4)%
Adjusted basic EPS 20.7p 21.9p (5.2)%
Free cash flow £511m £514m (0.6)%
Net debt
1
£(2,015)m £(2,116)m n/a
1. Includes £2,253m of lease liabilities (FY 23/24: £2,367m), including £42m of lease liabilities held for sale (FY 23/24: £nil).
Sales
Total sales decreased by 0.8% on a constant currency basis, to £12,784m. This reflected resilient core category sales (supported by
repairs, maintenance and existing home renovation activity). As expected, ‘big-ticket’ category sales were weaker, reflecting trends
across the broader market, and seasonal category sales were impacted by unfavourable weather in Q2. Encouragingly, both ‘big-
ticket’ and seasonal categories delivered improved sales performances in H2, with ‘big-ticket’ delivering sales growth in Q4. On a
constant currency basis, UK & Ireland, Poland and Iberia all achieved year-on-year (YoY) growth, with improved underlying sales
trends in H2 compared to H1. In the UK & Ireland, sales growth was driven by Screwfix along with B&Q’s trade-focused banner,
TradePoint, while growth in Poland was supported by an improved consumer environment. Sales in France were lower against a soft
consumer backdrop throughout the year. Sales in Romania were slightly lower YoY, impacted by a weaker consumer environment in
Q2 and Q3, before turning positive in Q4. On a reported basis, which includes the impact of exchange rates, total sales decreased
by 1.5%.
Like-for-like sales
Like-for-like (LFL) sales of -1.7% excludes a +0.9% sales impact from a net increase in space, driven by Screwfix store openings in the
UK & Ireland, and Castorama in Poland. During the year, we opened 50 stores – 33 stores in the UK, one in Ireland, 11 in France, of which
10 were Screwfix stores, and five in Poland. We closed five stores in the UK, one in France and one in Romania.
A reconciliation from LFL sales to total sales is set out below:
2024/25
£m
2023/24
£m
Increase/
(decrease)
LFL sales (constant currency) 12,606 12,828 (1.7)%
Non-LFL sales 178 54 n/a
Total sales (constant currency) 12,784 12,882 (0.8)%
Impact of exchange rates – 98 n/a
Total sales (reported rates) 12,784 12,980 (1.5)%
47
Kingfisher 2024/25 Annual Report and Accounts
Financial review continued
Gross margin
Gross margin % increased by 50 basis points on a constant currency and reported basis, reflecting the effective management of
product costs, supplier negotiations and retail prices, lower stock provisions driven by better inventory management, and logistics
cost efficiencies. Group gross profit increased by 0.5% in constant currency.
Retail profit
In constant currency, retail profit decreased by 6.6% to £696m, reflecting lower profits in France and higher losses from our
joint venture in Turkey, partially offset by higher profits in Poland and reduced losses in Romania. Profits in the UK & Ireland were
supported by £33m of one-off business rates refunds at B&Q. On a reported basis, retail profit decreased by 7.0%. Operating costs
increased by 1.8% on a constant currency basis. Excluding business rates refunds at B&Q and the retail loss of Koçtaş, operating costs
increased by 2.0%, largely reflecting higher pay rates and technology investments, costs associated with new store openings and
new business (including Screwfix France). The operating costs movement also reflects a favourable YoY impact from charges related
to ineffective foreign exchange hedges in the prior year. This was partially offset through structural savings achieved by our cost
reduction programme, lower energy costs and the flexing of staffing levels and discretionary spend. The Group’s retail profit
margin % decreased by 30 basis points on a constant currency basis to 5.4% (FY 23/24: 5.8%, at reported rates).
Adjusted pre-tax profit
Adjusted pre-tax profit decreased by 7.0% to £528m (FY 23/24: £568m), reflecting lower retail profit, partially offset by lower net
finance costs and share of JV interest and tax.
Statutory pre-tax profit
Statutory pre-tax profit decreased by 35.4% to £307m (FY 23/24: £475m). This reflects lower operating profit, including higher
adjusting items YoY (see page 49 for further detail).
A reconciliation from the adjusted basis to the statutory basis for pre-tax profit is set out below:
2024/25
£m
2023/24
£m
Increase/
(decrease)
Retail profit (constant currency) 696 746 (6.6)%
Impact of exchange rates – 3 n/a
Retail profit (reported) 696 749 (7.0)%
Central costs (62) (60) (2.7)%
Share of interest and tax of joint ventures & associates (6) (16) n/a
Net finance costs (100) (105) +4.4%
Adjusted pre-tax profit 528 568 (7.0)%
Adjusting items before tax (221) (93) n/a
Statutory pre-tax profit 307 475 (35.4)%
Net finance costs of £100m (FY 23/24: £105m) consist principally of interest on lease liabilities. The YoY decrease was largely due to
higher interest income on cash deposits.
Other Information
48 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Adjusting items after tax were a total charge of £196m (FY 23/24: charge of £70m), as detailed below:
2024/25
£m
Gain/(charge)
2023/24
£m
Gain/(charge)
Net store asset impairment charges (94) (76)
Castorama France goodwill impairment (84) –
Impairments of Romania assets and other exit costs (22) –
Castorama France head office restructuring (15) –
Operating model restructuring (5) (11)
Loss on disposal of NeedHelp (3) –
UK guaranteed minimum pension equalisation 2 –
NeedHelp goodwill impairment – (8)
Profit on disposal of Crealfi associate investment – 2
Adjusting items before tax (221) (93)
Prior year and other adjusting tax items 25 23
Adjusting items after tax (196) (70)
Against the context of our performance in FY 24/25, we have revised the future projections for a number of stores across the
Group’s portfolio. This has resulted in the recognition of £94m of net store impairment charges in the year. Impairment charges of
£118m have been recorded principally in France and the UK, partially offset by impairment reversals of £24m (principally in France).
Following the Group’s reassessment of operating and reportable segments (refer to note 2 to the Consolidated financial statements)
and the resulting reallocation of goodwill balances to our retail banners, an impairment charge of £84m was recorded in relation to the
goodwill associated with Castorama France, resulting from higher discount rates and revised financial projections.
In December 2024, the Group announced that it had reached an agreement to dispose of its 100% interest in its Brico Dépôt Romania
business, for an enterprise value of €70m (equivalent to c.£58m). The sale is expected to complete during the first half of FY 25/26.
Adjusting charges of £22m have been recognised in the year relating to this disposal, principally relating to impairment charges
recognised on classification of the business as held for sale, and other exit costs.
During the year, the Group held formal consultations with employee representatives regarding a head office restructuring
programme in Castorama France. Restructuring costs of £15m have been recognised related to this programme, primarily relating
to redundancy costs. No additional adjusting costs are expected to be incurred relating to this programme.
In the prior year, the Group held formal consultations with employee representatives regarding the Group’s technology operating
model restructuring programme. Charges of £5m were recorded in FY 24/25 relating to this programme, which has now completed.
During the year, the Group completed the disposal of its c.80% interest in NeedHelp for nil proceeds, resulting in a loss on disposal
of £3m. In addition, we updated the methodology under which the liability relating to guaranteed minimum pension equalisation is
calculated for the UK defined benefit scheme, to reflect the methodology chosen by the Trustees, resulting in a £2m credit.
Prior year and other adjusting tax items relate principally to deferred tax credits recorded in respect of the impairment and
restructuring expenses noted above, movements in prior year provisions to reflect a reassessment of expected outcomes,
agreed positions with tax authorities, and items that have time-expired.
49Kingfisher 2024/25 Annual Report and Accounts
Financial review continued
Taxation
The Group’s adjusted effective tax rate (ETR) is sensitive to the blend of tax rates and profits in the Group’s various jurisdictions.
It is higher than the UK statutory rate because of the amount of Group profit that is earned in higher tax jurisdictions and because no
future benefit is assumed for losses incurred in certain overseas territories. The adjusted ETR, calculated on profit before adjusting
items, prior year tax adjustments and the impact of future rate changes, is 28% (FY 23/24: 27%). The adjusted ETR is higher than the
prior year rate primarily due to the increase in the UK statutory tax rate to 25%, which was enacted on 1 April 2023 and had a full
effect in the current period. Other factors include higher losses from our joint venture in Turkey.
The statutory effective tax rate includes the impact of adjusting items (including prior year tax items). The impact of these result in a
statutory effective tax rate of 40%. This primarily reflects the applicable tax treatment of adjusting items.
Pre-tax profit
£m
Tax
£m
2024/25
%
Pre-tax profit
£m
Tax
£m
2023/24
%
Adjusted effective tax rate 528 (147) 28% 568 (153) 27%
Adjusting items (221) 25 (93) 23
Statutory effective tax rate 307 (122) 40% 475 (130) 27%
In FY 21/22, Kingfisher paid £64m (including interest) to HM Revenue & Customs in relation to the European Commission’s 2019 state
aid decision concerning the UK’s controlled foreign company tax rules. In September 2024, the European Court of Justice annulled
this decision, with repayment expected in H1 25/26. As of 31 January 2025, the Group is recognising this amount, plus accrued
repayment interest of £5m, as a current asset. Please refer to note 36 of the Consolidated financial statements.
The statutory tax rates applicable to this financial year and the expected statutory tax rates for next year in our main jurisdictions are
as follows:
Statutory tax rate
2025/26
Statutory tax rate
2024/25
UK 25% 25%
France
1
26% 26%
Poland 19% 19%
1. On 13 February 2025 the French government approved a temporary one-year CIT surcharge. Taxable profits will be subject to tax at the headline statutory
rate of 26% plus an additional one-off liability at 41% of the average relevant CIT liabilities in respect of the periods FY 24/25 and FY 25/26. The impact of the
surcharge in FY 25/26 on Kingfisher’s French operations is estimated to be c.£3m.
Adjusted basic earnings per share decreased by 5.2% to 20.7p (FY 23/24: 21.9p), which excludes the impact of adjusting items.
Basic earnings per share decreased by 44.7% to 10.1p (FY 23/24: 18.2p).
Earnings
1
£m
2024/25
EPS
pence
Earnings
1
£m
2023/24
EPS
pence
Adjusted basic earnings per share 381 20.7 415 21.9
Adjusting items before tax (221) (12.0) (93) (4.9)
Prior year and other adjusting tax items 25 1.4 23 1.2
Basic earnings per share 185 10.1 345 18.2
1. Earnings figures presented reconcile adjusted post-tax profits to statutory post-tax profits.
Other Information
50 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Tax contribution
Kingfisher makes a significant economic contribution to the countries in which it operates. In 2024/25 it contributed £2.3 billion in
taxes it both pays and collects for these governments. The Group pays tax on its profits, its properties, in employing over 76,000
people, in environmental levies, in customs duties and levies as well as other local taxes. The most significant taxes it collects for
governments are the sales taxes charged to its customers on their purchases (VAT) and employee payroll-related taxes. Taxes
paid and collected together represent Kingfisher’s total tax contribution which is shown below:
Total taxes paid as a result of Group operations
2024/25
£bn
2023/24*
£bn
Taxes borne 0.7 0.7
Taxes collected 1.6 1.5
Total tax contribution 2.3 2.2
* 2023/24 comparatives are presented on a constant currency basis.
Both current and prior year figures exclude the tax contribution of discontinued operations.
Kingfisher participates in the Total Tax Contribution survey that PwC perform for the Hundred Group of Finance Directors. The 2024
survey ranked Kingfisher 28
th
(2023: 28
th
) for its Total Tax Contribution in the UK. In 2024, 90 (2023: 92) companies contributed to
the survey.
Taxation governance and risk management
The Kingfisher Code of Conduct applies high standards of transparency, honesty and fairness to our employees and suppliers.
The Code requires that we carry out our work ethically and in compliance with the law. We have a zero-tolerance approach to tax
evasion and the facilitation of tax evasion. These principles underpin our approach to tax. Our core tax objectives are to pay the right
amount of tax at the right time and to comply with all relevant tax legislation in all Group entities. We undertake our activities and pay
tax in the countries in which we operate in compliance with the local and worldwide tax rules. These tax objectives are met through
the application of the Group Tax Standards, which are Board approved, and other relevant Group policies and standards, which
document our approach to tax compliance, tax risk management and tax planning to ensure that consistent minimum standards
are observed throughout the Group.
The responsibility for tax policy and management of tax risks lies with the Chief Financial Officer and the Group Tax Director who
engage regularly with the Board and the Audit Committee on all tax matters.
Tax risks can arise from changes in law, differences in interpretation of law and the failure to comply with the applicable rules and
procedures. The Group seeks to take a balanced approach to tax risk having regard to the interests of all stakeholders including
investors, customers, staff and the governments and communities in the countries in which it operates. As a multinational group,
operating in an increasingly complex and changing international corporate tax environment, some risk is unavoidable.
Kingfisher manage and control this risk through local management, the tax specialists that it employs and agile monitoring of
changes in law and interpretation of law. The Group may engage with reputable professional firms on areas of significant complexity,
uncertainty or materiality, to support it in complying with its tax strategy. Group companies work within a tax controls framework, and
compliance with this is monitored by the Internal Audit and Risk team.
The Group seeks to engage with tax authorities with professionalism, honesty and respect. It works with all tax authorities in a timely
and constructive manner to resolve disputes where they arise, although it is prepared to litigate where this is not possible.
51Kingfisher 2024/25 Annual Report and Accounts
Financial review continued
Management of balance sheet and liquidity risk and financing
Management of cash and debt facilities
Kingfisher regularly reviews the level of cash and debt facilities required to fund its activities. This involves preparing a prudent cash
flow forecast for the medium term, determining the level of debt facilities required to fund the business, planning for repayment or
refinancing of debt, and identifying an appropriate amount of headroom to provide a reserve against unexpected outflows and/or
impacts to cash inflows. To retain financial flexibility, we aim to maintain strong liquidity headroom (including cash and cash
equivalents, and committed debt facilities), which is currently set at a minimum of £800m.
Net debt to Adjusted EBITDA
As of 31 January 2025, the Group had £2,015m (FY 23/24: £2,116m) of net debt on its balance sheet. Net debt includes £2,253m
(FY 23/24: £2,367m) of total lease liabilities, including £42m of lease liabilities held for sale (FY 23/24: £nil). The ratio of the Group’s
net debt to Adjusted EBITDA was 1.6 times as of 31 January 2025 (1.6 times as of 31 January 2024). At this level, the Group has financial
flexibility while retaining an efficient cost of capital. The Group’s maximum net debt to Adjusted EBITDA is 2.0 times over the medium
term. Net debt to Adjusted EBITDA is set out below:
2024/25
£m
2023/24
£m
Retail profit 696 749
Central costs (62) (60)
Depreciation and amortisation 656 641
Adjusted EBITDA 1,290 1,330
Net debt 2,015 2,116
Net debt to Adjusted EBITDA 1.6 1.6
Credit ratings
Kingfisher holds a BBB credit rating with Fitch and a BBB rating with Standard and Poor’s. The outlook is Stable across both agencies.
Revolving credit facility
In May 2024, the Group entered into a new £650m Revolving Credit Facility (RCF) agreement with a group of its relationship banks,
linked to sustainability targets. The credit facility expires in May 2027 and replaces a previous £550m facility, most of which was due
to expire in May 2026. As of 31 January 2025, this RCF was undrawn.
Term loans
The Group has two existing fixed term loans with £50m maturing in June 2025 and £50m maturing in January 2026, with the latter
linked to the Group’s sustainability and community-based targets.
Covenants
The terms of the committed RCF and both term loans require that the ratio of Group operating profit (excluding adjusting items) to
net interest payable (excluding interest on lease liabilities) must be no less than 3:1 for the preceding 12 months as at the half- and
full-year ends. As of 31 January 2025, Kingfisher was compliant with this requirement.
Total liquidity
As of 31 January 2025, the Group had access to £986m in total liquidity, comprising cash and cash equivalents of £336m (net of bank
overdrafts, and including cash held for sale) and access to a £650m RCF.
Other Information
52 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Free cash flow
A reconciliation of free cash flow is set out below:
2024/25
£m
2023/24
£m
Operating profit 407 580
Adjusting items 221 93
Operating profit (before adjusting items) 628 673
Other non-cash items
1
703 673
Change in working capital 108 118
Pensions and provisions (5) (5)
Net rent paid (512) (474)
Net interest received 15 9
Tax paid (109) (117)
Gross capital expenditure (317) (363)
Free cash flow 511 514
Ordinary dividends paid (228) (237)
Share buybacks (225) (160)
Share purchase for employee incentive schemes (26) (24)
Investment in joint venture (19) –
Disposal of NeedHelp (3) –
Disposal of Crealfi S.A. and acquisition of assets of Connect Distribution Services Limited – 6
Disposal of assets and other
2
(19) (15)
Net cash flow (9) 84
Opening net debt (2,116) (2,274)
Movements in lease liabilities 107 71
Other movement including foreign exchange 3 3
Closing net debt (2,015) (2,116)
1. Includes depreciation and amortisation, share-based compensation charge and pension operating cost.
2. Includes adjusting cash flow items (principally comprising restructuring costs), partially offset by proceeds from the issue of new shares.
Operating profit (before adjusting items) was £45m lower than last year, reflecting lower retail profit partially offset by lower share
of JV interest and tax. The working capital inflow of £108m was primarily due to a net inventory decrease of £87m, driven by strategic
reduction initiatives, a reduction in seasonal stock, product cost price deflation and improved stock health. Net payables increased by
£21m, largely reflecting the timing of supplier payments and higher deferred income recognised in trade creditors.
Gross capital expenditure was £317m, decreasing by 12% (FY 23/24: £363m). Of this expenditure, 44% was invested in refreshing,
maintaining and adapting existing stores (including renewable energy initiatives), 10% on new stores, 31% on technology and digital
development, 8% on range reviews and 7% on other areas including supply chain investment.
Overall, free cash flow for FY 24/25 was £511m (FY 23/24: £514m). Net debt as of 31 January 2025 (including lease liabilities) was
£2,015m (FY 23/24: £2,116m), including £33m net debt held for sale (FY 23/24: £nil).
53Kingfisher 2024/25 Annual Report and Accounts
Financial review continued
A reconciliation of net cash flows from operating activities to free cash flow and net cash flow, and to the statutory net movement in
cash and cash equivalents and bank overdrafts, is set out below:
2024/25
£m
2023/24
£m
Net cash flows from operating activities 1,302 1,321
Net lease rent paid (512) (474)
Net interest received 15 9
Gross capital expenditure (317) (363)
Operating cash flows relating to adjusting items
1
23 21
Free cash flow 511 514
Ordinary dividends paid (228) (237)
Share buybacks (225) (160)
Share purchases for employee incentive schemes (26) (24)
Disposal of Crealfi S.A. and acquisition of assets of Connect Distribution Services Limited – 6
Investment in joint venture (19) –
Disposal of NeedHelp (3) –
Disposal of assets and other
2
(19) (15)
Net cash flow (9) 84
Arrangement fees paid (2) –
Net (decrease)/increase in cash and cash equivalents and bank overdrafts (11) 84
1. Includes cash flows relating to adjusting items, principally comprising restructuring costs.
2. Includes operating cash flows relating to adjusting items, partially offset by proceeds from the issue of new shares and the disposal of assets.
Dividends
The Board has proposed a final dividend per share of 8.60p (FY 23/24 final dividend: 8.60p). Taken alongside the interim dividend
already paid of 3.80p, this results in a proposed total dividend per share of 12.40p in respect of FY 24/25 (FY 23/24: 12.40p). The final
dividend is subject to shareholder approval at the Annual General Meeting on 23 June 2025, and if approved will be paid on 30 June
2025 to shareholders on the register at close of business on 23 May 2025. The shares will go ex-dividend on 22 May 2025.
A dividend reinvestment plan (DRIP) is available to shareholders who would prefer to invest their dividends in the Company’s shares.
The last date for receipt of DRIP elections is 9 June 2025.
Capital allocation priorities
The Group’s objectives in managing capital are to:
— Invest in the business where economic returns are attractive.
— Maintain a solid investment grade credit rating.
— Safeguard the Group’s ability to continue as a going concern and retain financial flexibility.
— Provide attractive returns to shareholders.
We allocate capital, subject to strict returns criteria, to organic and ‘bolt-on’ inorganic growth opportunities that accelerate our
strategy. Our target gross capital expenditure is c.3% of total sales per annum, focused on delivering against attractive organic
growth opportunities.
To maintain a solid investment grade credit rating, our maximum net debt to Adjusted EBITDA is 2.0 times over the medium term. To
retain financial flexibility, we aim to maintain strong liquidity headroom (including cash, cash equivalents and committed debt facilities),
which is currently set at a minimum of £800m. Total liquidity as of 31 January 2025 was £986m, including an undrawn revolving credit
facility of £650m and cash of £336m (net of bank overdrafts, and including cash held for sale).
Our target ordinary dividend cover range is 2.25 to 2.75 times, based on adjusted basic earnings per share. We may move outside of
this target range, temporarily, from time to time. Overall, our aim is to grow the ordinary dividend progressively over time. If surplus
capital remains after having achieved all the above objectives, the Board will return surplus capital to shareholders via a share
buyback programme or special dividends.
Other Information
54 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Return on capital employed (ROCE)
In FY 24/25, Kingfisher’s post-tax ROCE was 7.4% (FY 23/24: 7.8%). The decrease was driven by lower profits in France. Kingfisher’s
weighted average cost of capital (WACC) was 8.8% (FY 23/24: 8.8%). ROCE by geographic division is analysed below:
Sales
£bn
Proportion of
Group sales
Capital employed
(CE) £bn
Proportion of
Group CE
ROCE
2024/25
ROCE
2023/24
UK & Ireland 6.5 50.5% 2.8 45.1% 14.9% 14.5%
France 3.9 30.4% 1.6 26.3% 4.3% 5.9%
Poland 1.8 14.0% 1.2 18.4% 6.4% 6.0%
Other International 0.7 5.1% 0.3 4.9% n/a n/a
Central 0.3 5.3% n/a n/a
Total 12.8 6.2 7.4% 7.8%
Property
Kingfisher owns a significant property portfolio, the majority of which is used for trading purposes. A formal valuation of the
portfolio was undertaken by external professional valuers in October 2024. Based on this exercise, on a sale and leaseback basis with
Kingfisher in occupancy, the value of the property portfolio was £2.7bn (FY 23/24: £2.7bn). This is compared to a net book value of
£2.2bn (FY 23/24: £2.2bn) recorded in the financial statements (including investment property and property included within assets
held for sale). Balance sheet values were frozen as of 1 February 2004, on transition to IFRS.
2024/25
£bn
2024/25
Yields
2023/24
£bn
2023/24
Yields
France 1.3 8.4% 1.3 8.6%
UK 0.5 7.5% 0.5 7.5%
Poland 0.7 8.3% 0.7 8.3%
Other 0.2 n/a 0.2 n/a
Total 2.7 2.7
Pensions
As of 31 January 2025, the Group had a net surplus of £101m (FY 23/24: £99m net surplus) in relation to defined benefit pension
arrangements, of which a £202m surplus (FY 23/24: £212m surplus) was in relation to the UK scheme. The Group net surplus position
has remained relatively stable with the movements in the UK net surplus scheme largely offsetting the reduction of the Overseas
net deficit. As part of the funding valuation exercise completed in 2022, the Trustee and Kingfisher agreed to cease annual employer
contributions from August 2022 to July 2025. The accounting valuation is sensitive to a number of assumptions and market rates
which are likely to fluctuate in the future. Please refer to note 28 of the consolidated financial statements.
55Kingfisher 2024/25 Annual Report and Accounts
Trading review by division
UK & Ireland
£m 2024/25 2023/24
% Reported
change
% Constant
currency
change
% LFL
change
B&Q 3,820 3,849 (0.8)% (0.7)% (0.4)%
Screwfix 2,636 2,538 +3.9% +4.0% +1.0%
Total sales 6,456 6,387 +1.1% +1.2% +0.2%
Retail profit 558 555 +0.6% +0.6%
Retail profit margin % 8.6% 8.7% (10)bps (10)bps
UK & Ireland sales increased by 1.2% (LFL +0.2%) to £6,456m, with market share gains at both banners (as measured by BRC, Barclays
and GfK) supported by strong e-commerce sales and our progress in addressing trade customer needs. Gross margin % increased
by 20 basis points, reflecting the effective management of product costs, supplier negotiations and retail prices, and a favourable
channel mix reflecting the growth of B&Q’s marketplace, partially offset by category mix.
Retail profit increased by 0.6% to £558m (FY 23/24: £555m, at reported rates), reflecting higher gross profit, largely offset by
higher operating costs (up 2.1%). Operating cost increases were driven by year-on-year (YoY) increases in staff costs, higher costs
associated with 29 net new store openings, and higher marketing and technology investment. Cost increases were partially offset by
savings achieved by our structural cost reduction programme, lower energy costs and £33m of one-off business rates refunds at
B&Q related to prior years. Retail profit margin % decreased by 10 basis points to 8.6% (FY 23/24: 8.7%).
B&Q
Total sales decreased by 0.7% (LFL -0.4%) to £3,820m, with LFL sales growth in core categories and seasonal sales offset by
weakness in ‘big-ticket’. Sales trends improved in Q4 within our seasonal and ‘big-ticket’ categories compared to Q3, while core
categories remained slightly positive YoY. B&Q’s total e-commerce sales increased by 17.2% YoY, driven by the continued strong
performance of B&Q’s marketplace which reached an e-commerce sales penetration of 43% in January 2025. B&Q’s e-commerce
sales penetration moved up to 15% for the year (FY 23/24: 13%; FY 19/20: 5%). The business closed one big-box and two medium-box
stores in the year. B&Q opened one retail park store and one compact format store under the ‘B&Q Local’ banner. In Q4, B&Q
announced the acquisition of eight former Homebase leasehold stores (five in the UK and three in Ireland). The acquisition of all the
stores has completed, with conversion into B&Q stores taking place in the next few months. As of 31 January 2025, B&Q had a total
of 310 stores in the UK & Ireland.
TradePoint
B&Q’s trade-focused banner, TradePoint, delivered a strong performance with sales up 6.4%, now representing 23.4% of B&Q sales
(FY 23/24: 21.8%). This was supported by strong performances across all categories except kitchens, although this category was
much improved in Q4 following the successful launch of new ranges. TradePoint sales outperformed the rest of B&Q across all
categories. TradePoint is present in 217 stores within the B&Q network (70% of stores), opening eight new counters in the year.
Screwfix
Total sales increased by 4.0% (LFL +1.0%) to £2,636m, reflecting robust demand from trade customers. In particular, Screwfix
achieved LFL sales growth in its tools & hardware, building & joinery, outdoor and kitchen categories, together with sales growth in
its Spares business. Screwfix sales growth was lower in Q4 compared to Q3, driven by the impact of milder weather in November
on EPHC sales. Screwfix’s e-commerce sales increased by 4.7% YoY, with e-commerce sales penetration of 58% (FY 23/24: 57%;
FY 19/20: 33%). This was supported by several app-exclusive campaigns which drove a c. 7 ppts uplift in app sales participation in
FY 24/25 to 22% (i.e., Screwfix app sales divided by Screwfix’s total sales), and the extension of its Screwfix Sprint proposition to
an additional 151 stores (i.e., one-hour home delivery now available in 485 stores, covering around 60% of the UK population).
Space growth and acquisitions contributed c.3.0% to total Screwfix sales. Screwfix opened 32 new stores – 31 in the UK (including
seven Screwfix ‘City’ ultra-compact format stores) and one in Ireland. Screwfix also closed two stores in the year, bringing its total
to 952 as of 31 January 2025.
The results for Screwfix France are captured in ‘Other International’ (see page 58 for further information).
Other Information
56 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
France
£m 2024/25 2023/24
% Reported
change
% Constant
currency
change
% LFL
change
Castorama 2,014 2,219 (9.2)% (6.8)% (6.6)%
Brico Dépôt 1,869 2,027 (7.8)% (5.3)% (5.7)%
Total sales 3,883 4,246 (8.6)% (6.1)% (6.2)%
Retail profit 95 139 (31.6)% (29.8)%
Retail profit margin % 2.4% 3.3% (90)bps (80)bps
France sales decreased by 6.1% (LFL -6.2%) to £3,883m. Despite challenging trading conditions, Castorama and Brico Dépôt both
continued to deliver on their strategic priorities, with their respective sales ahead of the market (as measured by GfK). In H2, sales
trends improved (H2 LFL -4.9% vs H1 LFL -7.2%) driven by an improved performance in core, seasonal and ‘big-ticket’ categories.
Our new kitchen ranges continue to land well, delivering LFL growth in Q4. Underlying sales trends in core categories were slightly
lower from Q3 to Q4, driven by the market backdrop. Seasonal sales were also lower, impacted by unfavourable weather conditions.
Gross margin % increased by 80 basis points, reflecting the effective management of product costs, supplier negotiations and retail
prices, lower stock provisions driven by better inventory management, and lower logistics costs. This was partially offset by channel
mix, reflecting the growth of trade customer sales.
Retail profit decreased by 29.8% to £95m (FY 23/24: £139m, at reported rates), with lower gross profit partially offset by lower
operating costs. Operating costs decreased by 1.6% as a result of structural cost savings, and swift action taken during the year to
flex staff costs and discretionary spend in response to the weaker trading environment. The savings were partially offset by higher
technology costs and cost inflation, including YoY increases in staff pay rates. Retail profit margin % decreased by 80 basis points to
2.4% (FY 23/24: 3.3%, at reported rates).
Castorama
Castorama total sales decreased by 6.8% (LFL -6.6%) to £2,014m. Sales trends improved in H2 across all categories, with LFL sales
performance in the building & joinery, outdoor and tools & hardware categories better than the overall Castorama average. ‘Big-
ticket’ sales trends saw an improvement in Q4 (vs Q3), driven by kitchen sales. Seasonal sales were lower in Q4, impacted by milder
weather conditions in the latter part of the quarter. Castorama’s total e-commerce sales increased by 13.4% YoY, with e-commerce
sales penetration increasing to 7% (FY 23/24: 6%; FY 19/20: 2%), benefiting from positive early results from its marketplace (launched
in Q1 24/25) and Hello Casto, an in-house-developed AI virtual assistant. As of 31 January 2025, Castorama had a total of 94 stores in
France.
Update on Castorama’s store restructuring and modernisation plan
Castorama is making rapid progress in the restructuring and modernisation of its lowest performing stores, completing or with
work ongoing on a total of 13 stores in FY 24/25. Castorama completed four rightsizings in the year. Our previously rightsized stores
(Gonesse and La Rochelle) have delivered low double-digit % sales density improvements on average vs FY 19/20, significantly higher
than the Castorama France average. All rightsized stores, at the same time, benefit from a comprehensive store refit. Additionally,
in FY 24/25, Castorama commenced work on one comprehensive store refit, similar to the concept successfully applied at the
Castorama Englos store last year. The refitted Castorama Englos store delivered a c. 5 ppts higher LFL performance than the
Castorama France average. Five more low-performing stores have also benefited from a lighter-touch refresh. The transfer to Brico
Dépôt of one low-performing Castorama store is in motion, with the store closed in H2 and re-opening in H1 25/26 under the Brico
Dépôt banner. The first two franchises are on track to begin in H1 25/26. The business is planning to commence work on 11 further
stores in FY 25/26 across these four avenues.
Brico Dépôt
Brico Dépôt total sales decreased by 5.3% (LFL -5.7%) to £1,869m. Sales trends improved in H2 (LFL -4.5%) driven by the
performance of ‘big-ticket’. The kitchen category delivered LFL growth in Q4, driven by the implementation of new ranges.
Despite this strong performance, overall LFL sales trends were softer in Q4, due to the weak market backdrop and the impact of
unfavourable weather on seasonal category sales. E-commerce sales decreased by 6.8%, against strong prior year comparatives
(FY 23/24 e-commerce sales: +14.7%). E-commerce sales penetration was maintained at 5% (FY 23/24: 5%; FY 19/20: 2%). The business
made strong progress in the development of its trade customer proposition in the year, with service desks, dedicated colleagues and
a new loyalty programme rolled out to all stores in February 2024, following successful trials. Brico Dépôt will recruit new trade sales
partners in FY 25/26, following the success seen at TradePoint in the UK. Trade sales penetration reached 12.8% in January, up
4.2 ppts since the start of FY 24/25. Brico Dépôt opened one new store in the year, with a total of 126 stores in France as of
31 January 2025.
57Kingfisher 2024/25 Annual Report and Accounts
Trading review by division continued
Poland
£m 2024/25 2023/24
% Reported
change
% Constant
currency
change
% LFL
change
Total sales 1,788 1,694 +5.5% +3.2% (0.1)%
Retail profit 90 82 +10.5% +8.0%
Retail profit margin % 5.1% 4.8% +30bps +20bps
Poland sales increased by 3.2% (LFL -0.1%) to £1,788m, supported by a stable consumer environment and market share gains (as
measured by GfK) following strong progress in the development of initiatives to drive trade customer sales. ‘Big-ticket’ categories
delivered LFL growth YoY, driving a sequential improvement in overall sales in H2 vs H1. ‘Big-ticket’ sales growth in Q4 was largely
driven by the bathroom & storage category following improvements to the customer journey and marketing. Underlying core and
seasonal category sales both improved in H2, with strong growth in Q4 driven by trade customer sales. Castorama’s e-commerce
sales increased by 4.3% YoY, supported by improved technology and stronger sales from its mobile app. Castorama successfully
launched its e-commerce marketplace in January 2025, with positive early results. E-commerce sales penetration was 3% (FY
23/24: 3%; FY 19/20: 2%). The business continues to focus on developing its trade customer proposition through further roll-out
of ‘CastoPro’ zones, now in 12 stores, and 54 specialised sales partners now in 40 stores. The business launched an app for its trade
customers in December, with c.75k downloads since launch. Trade sales penetration reached 24.5% in January, up 19.1 ppts since the
start of FY 24/25.
Space growth contributed c.3.3% to total Poland sales. Castorama opened five stores in the year (four big-boxes and one compact
‘Castorama Smart’ store), bringing its total to 107 stores in Poland as of 31 January 2025.
Gross margin % increased by 80 basis points, reflecting the effective management of product costs, supplier negotiations and retail
prices, partially offset by higher promotional participation, clearance, and category mix. Retail profit increased by 8.0% to £90m
(FY 23/24: £82m, at reported rates), with a higher gross profit partially offset by higher operating costs. Operating costs increased
by 5.4%, reflecting the YoY increase in pay rates, higher staff bonuses, and higher costs associated with five new store openings.
Cost increases were partially offset by savings achieved by our structural cost reduction programme, and the flexing of staff levels
and discretionary spend. The operating costs movement also reflects a favourable YoY impact from charges related to ineffective
foreign exchange hedges in the prior year. Retail profit margin % increased by 20 basis points to 5.1% (FY 23/24: 4.8%, at
reported rates).
Other International
Sales (£m) 2024/25 2023/24
% Reported
change
% Constant
currency
change
% LFL
change
Iberia 384 371 +3.3% +6.1% +6.1%
Romania 257 269 (4.4)% (1.4)% +0.8%
Screwfix France & Other 16 13 n/a n/a n/a
Other International 657 653 +0.8% +3.7% +4.1%
Retail profit (£m)
Iberia 8 6 +32.4% +36.0%
Romania (11) (18) +40.7% +38.8%
Screwfix France & Other (35) (30) n/a n/a
Turkey (50% JV) (9) 15 n/a n/a
Other International (47) (27) (73.8)% (69.1)%
Total sales increased by 3.7% (LFL +4.1%) to £657m, driven by strong growth in Iberia. Retail loss increased to £47m (FY 23/24: £27m
retail loss, at reported rates). This reflected losses in Turkey and Screwfix France & Other, partially offset by higher retail profits in
Iberia and a reduced loss in Romania.
Other Information
58 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Iberia
Total sales increased by 6.1% (LFL +6.1%) to £384m. Sales trends were strong in H2 (LFL +10.6%) vs H1 (LFL +2.3%), with double-digit
LFL sales growth in Q4 of core and ‘big-ticket’ categories. Seasonal sales were down for the year overall, though were much stronger
in H2 (LFL +5.7%). The business saw encouraging results from the continued development of its trade customer proposition, resulting
in double-digit YoY sales growth in its building & joinery category. Brico Dépôt also continued to scale its e-commerce marketplace,
reaching an e-commerce sales penetration of 33% in January 2025. Retail profit increased to £8m (FY 23/24: £6m, at reported rates),
reflecting higher gross profit partially offset by higher operating costs (up 8.2% YoY).
Romania
Total sales decreased by 1.4% (LFL +0.8%) to £257m. Sales trends slowed in H2 (LFL +0.1% vs H1 +1.5%), with much improved core and
‘big-ticket’ sales offset by the impact of unfavourable weather on seasonal category sales. The business achieved LFL sales growth
in its building & joinery, bathroom & storage, outdoor and tools & hardware categories in the year. Romania’s retail loss decreased
to £11m (FY 23/24: £18m reported retail loss), reflecting slightly higher gross profit and lower operating costs. Operating costs
decreased by 5.6%. In December 2024, we announced the sale of the entire Brico Dépôt Romania business including its network of
31 stores, distribution operations and head office to Altex Romania, for an enterprise value of €70m (equivalent to c.£58m). The sale
is expected to complete in H1 25/26.
Screwfix France & Other
Screwfix France & Other consists of the consolidated results of Screwfix France, NeedHelp, and franchise and wholesale
agreements. In line with our expectations, a combined retail loss of £35m (FY 23/24: £30m reported retail loss) was recorded, largely
driven by Screwfix France as the business invested in the opening of new stores. Screwfix had a total of 30 stores in operation in
France as of 31 January 2025, opening 10 new stores in the year. The business continues to see encouraging sales trends against
the backdrop of market weakness in France, and remains focused on strengthening its brand awareness in the north of France (up
three percentage points YoY) and further developing its customer proposition, including growing its Screwfix Sprint proposition and
campaigns to attract and retain trade customers. Screwfix plans to open up to five stores in France in FY 25/26. On 18 July 2024, we
completed a divestment of our c.80% equity interest in NeedHelp. Finally, we are focused on growing our franchise and wholesale
business in new markets. We currently have six wholesale partners across 10 countries in Europe, Africa and the Middle East, whereby
certain own exclusive brands (OEB) products are supplied to retailers.
Turkey
In Turkey, Kingfisher’s 50% joint venture, Koçtaş, contributed a retail loss of £9m (FY 23/24: £15m retail profit, at reported rates)
in a highly challenging and volatile macroeconomic and trading environment. Including our share of Koçtaş’ interest and tax
(FY 24/25: £6m loss vs FY 23/24: £16m loss), the overall contribution of Koçtaş to Group adjusted PBT was a net loss of £15m
(FY 23/24: £1m net loss). This net loss was better than our expectations, primarily due to lower than anticipated hyperinflation
adjustments. The financial performance largely reflects sales challenges, in addition to higher operating costs related to staff
pay rates and costs of credit collection, together with the negative impact of accounting under high inflation. As a result of these
challenges, Koçtaş swiftly initiated a comprehensive restructuring programme in the year, including a large reduction in headcount
(c. 900 FTEs) and the net closure of 106 stores. As of 31 January 2025, the business had a total of 262 stores in Turkey.
Retail banner employees, store numbers and sales area
Employees
(FTE)
at 31 Jan 2025
Store
numbers
at 31 Jan 2025
Sales area
(000s m
2
)
at 31 Jan 2025
B&Q 14,721 310 2,191
Screwfix
1
9,801 952 57
UK & Ireland 24,522 1,262 2,248
Castorama 9,464 94 1,143
Brico Dépôt 7,744 126 880
France 17,208 220 2,023
Poland 11,680 107 889
Iberia 1,818 31 194
Romania 2,122 31 232
Screwfix France & Other
2
267 30 1
Other International 4,207 92 427
Total 57,617 1,681 5,587
1. Screwfix sales area relates to the front of counter area of an outlet.
2. ‘Screwfix France & Other’ consists of Screwfix France, and franchising and wholesaling.
59Kingfisher 2024/25 Annual Report and Accounts
Risks
Risk management
Effective risk management is critical to our ability to achieve our
strategic and operational objectives. Our banners and Group
Functions work with the Group Risk team throughout the year
toensure risk management processes are followed, which
includes reviewing and assessing the management of their
respective risks. While individual Group Executive members
areaccountable for managing risks in their own areas, the
Group Executive collectively identifies, assesses and manages
the Group’s principal risks. The Board performed a robust risk
assessment this year to understand our principal and emerging
risks, along with the mitigating controls and actions.
The governance framework and the role of the Board, Audit
Committee and Group Executive are set out from page 70.
To identify our risks, we consider our strategic objectives and
what might stop us achieving them over the three-year period.
We combine a top-down strategic view with a bottom-up
operational view of risks. Our banners and Group Functions
helpus to identify changes to the risks within their operations.
This starts with a workshop involving all of the local leadership
team, discussing existing, new and emerging risks. These are
consolidated and used as one of the inputs to identify and
validate our principal risks. Discussions are also held with the
Group Executive and non-executive directors, both individually
and collectively.
To assess our risks, we consider the potential financial,
reputational, regulatory or operational impact, as well as the
probability of them materialising within our three-year outlook
period. Using five different impact and likelihood levels, risks
are plotted on a 5 x 5 matrix. This helps us to create the right
actions and controls to manage our risks to an acceptable level.
For each of the principal risks, we also assess any change to the
risk level compared to the prior year.
To manage our risks, ownership is assigned at all levels.
Each banner and Group Function is responsible for putting
appropriate actions, controls, and procedures in place to
manage and monitor their identified risks and to verify that the
controls operate effectively. Mitigation plans are developed by
individual risk owners, who are members of the local leadership
team, before being validated by the respective Group Executive
member. They are supported in this by dedicated risk and
control managers.
To effectively monitor our risks, local management regularly
reviews the effectiveness of its mitigation plans. The Group
Executive and Board review the nature, likelihood and impact
ofthe Group’s principal risks twice a year, together with any
changes since the previous review. This includes mitigating
actions to ensure that these risks are proactively managed.
During the year, the Audit Committee reviews the risk
assessment process and receives presentations from banners
and Group Functions on a rotating basis. These presentations
cover risk assessments and mitigating actions, enabling the Audit
Committee to monitor the risks and level of controls in place.
The Internal Audit team considers the risks at the operational
andGroup level as part of its quarterly audit planning cycle,
toprovide timely assurance of the most significant risks across
the business. Insights from the risk management process support
Internal Audit to deliver a risk-focused assurance programme.
The FRC Corporate Governance Code 2024 provision 29 asks
boards to make a declaration in relation to the effectiveness of
their material internal controls. This will apply to financial years
beginning on or after 1 January 2026, and so will apply to the
Group for the year ending 31 January 2027. The Group Internal
Controls team has been working to enhance our controls
framework, working with the Group Risk team to ensure
alignment and coverage over our principal risks.
Further information on this is included in the Audit Committee report on
page 86.
Risk appetite
The Group Risk team revalidated our risk appetite positions in
early 2024 to understand where we actively choose to pursue
opportunities that give rise to risks, where we balance risks with
the cost of mitigation, and where we are unwilling to accept risks.
This highlighted a small number of activities where risk reduction
actions were necessary to ensure the level of risk we are
exposed to is in line with our appetite. Later in the year, an
assessment of these actions was performed to ensure plans are
progressing as expected. The update was presented to both our
Group Executive and Board.
Principal risks
Following a comprehensive review, our existing principal risks
remain broadly unchanged. The risks have been updated to
reflect progress made in delivering our strategy and changes
inthe external operating environment. These are included in
thedescriptions of risks and mitigating actions.
All principal risks are given significant attention and focus.
Webelieve the highest severity risks are:
— Geopolitical instability creating macroeconomic volatility.
— Cyber and data security.
— Responding to changing customer expectations.
The third risk above was renamed from ‘customer preferences’
to ‘customer expectations’ to clarify that this is primarily a risk
related to continuously evolving customer expectations around
product, service and sales channel performance.
Principal risks are shown on pages 61 to 65.
Emerging risks
As part of our risk management process, we identify and monitor
emerging risks. These risks are currently difficult to fully assess
and quantify or are expected to materialise outside our defined
outlook period.
We have a thorough process to capture emerging risks
across our banners and Group Functions. Alongside their
risk identification process, each area was asked to consider
what future risks they were concerned by, and what they were
doing to better understand them. We also review what other
companies are reporting and assess whether these are
applicable to us.
The reviews highlighted several potential emerging trends.
Where appropriate, these have been incorporated into our
existing Group principal risks. Other trends are not deemed
tobe fully emerging risks, and we will continue to monitor
theseinternally.
Other Information
60 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Our colleagues are critical to the successful delivery of our
‘Poweredby Kingfisher’ strategy and priorities. Failure to attract,
retain and develop colleagues with appropriate skills and capabilities
could impact our ability to deliver our strategic priorities and business
objectives at the pace required.
We have set ambitious inclusion and diversity targets to promote
more innovation and creativity and ensure Kingfisher is an inclusive
place to work. Failure to attract and retain colleagues to meet these
targets could have a negative impact on delivering our business
objectives and cause reputational damage.
A resilient supply chain is key to our business and the achievement
ofour strategic objectives. We are dependent on complex global
supply chains and fulfilment solutions to deliver our products to
our customers. We are also reliant on the ability of our suppliers to
respond quickly to changes in demand and to be financially resilient,
particularly to fluctuations in energy prices.
Major disruption to our supply chain, along with a failure to respond
quickly and effectively, could result in reduced levels of product
availability, with an adverse financial and reputational impact.
Risk trend
We have made strong progress on our Group-wide targets which we
continue to drive through our banners’ people strategies. Metrics around
our people and culture have either stayed constant or have improved,
reflecting high colleague sentiment and engagement (see the People
and culture section on page 16 for further information).
Link to strategic priorities
—
Grow by building on our different banners.
— Accelerate e-commerce through speed and choice.
— Build a data-led customer experience.
— Lead the industry in Responsible Business and energy efficiency.
— Agile and lean.
Risk trend
This risk has been managed well over the past year, with increased lead
times being factored into supply chains as the situation in the Red Sea
remains uncertain. We continue to engage regularly with our suppliers
tounderstand how the current economic volatility is managed to ensure
it does not affect operations.
Link to strategic priorities
—
Develop our trade business.
— Accelerate e-commerce through speed and choice.
— Differentiate and win through own exclusive brands (OEB).
— Agile and lean.
How we manage and monitor the risk
— The Board has approved our Group strategy for people and culture,
with individual priorities agreed for each banner and function, including
a focus on attracting, retaining, and developing their colleagues.
— The Group Executive and Board hold regular talent reviews
focused on ensuring senior leadership has the required capabilities
to deliver the strategy and activities to strengthen our leadership
succession pipeline.
— Investing in tools and infrastructure to support our colleagues’
learning, including a leadership development portal for bite-size
instant learning and e-learning for our store teams on new products.
— Continue to embed our key leadership behaviours through our
leadership development work. This will accelerate delivery of our
strategy and embed our agile and inclusive culture led by trust.
— Each banner has a tailored inclusion and diversity plan. Areas of
focus are our senior leadership, creating a culture of inclusion,
our customer proposition and learning for life. Relevant targets
are linked to the remuneration of senior leaders.
— Each banner closely monitors colleague sentiment through our
listening platform ‘Peakon’ and creates associated action plans
toimprove colleague sentiment.
How we manage and monitor the risk
— Our supply and logistics three-year roadmap was updated in
2024/25. It considers our future logistics capacity needs, based
onthe various sourcing, inventory and sales-generative strategies
identified in the Group’s strategic planning activities.
— Business continuity plans cover our internal points of failure and
key partner service-continuity plans.
— Established partnerships with key transportation and logistics
suppliers to align planning and secure capacity.
— Continue to improve our demand forecasting to better anticipate
future salesrequirements and worked with suppliers to ensure
productavailability. Invested in supply chain visibility tools to be able
to better monitor products as they move through the supply chain
and react to events.
— Continued the implementation of store-based fulfilment for
customer orders.
— For our OEB suppliers, we have an agreed supplier strategy
including initiatives to diversify our ‘sourcing footprint’ and exploit
alternative sources where possible, and guidance on choosing which
regions to source from and when to use more than one factory
orsupplier to increase resilience.
— Robust process for selecting individual suppliers. This includes
checks on financial strength, ethical and environmental risks and
their ability to manufacture the products to the agreed specification.
— Continually review key suppliers by category to establish capacity
and volumes and assess the impact of an interruption in supply.
1
Our people
2
Supply chain resilience
Increasing No movement Decreasing
Risk trend:
61Kingfisher 2024/25 Annual Report and Accounts
Risks continued
Our competitors include both traditional store-based and pure-play
online retailers. In recent years, we have seen an increase in online
penetration in the home improvement market, including through
e-commerce marketplaces, and a growth of home improvement
offerings in other retailers (such as grocers and homeware stores).
Competitors are also developing their offers, including more
products, services and fulfilment options.
Targeted actions or disruptive behaviour by competitors could
negatively impact our market shares, the value of our assets
andour financial results.
Kingfisher operates in eight countries across Europe
1
and relies
onaglobal supply base, exposing us to both geopolitical uncertainty
and local volatility. Strikes or challenges to international trade could
impact our ability to receive products, limit the availability of certain
raw materials or increase costs. Failure to anticipate events or respond
appropriately could disrupt day-to-day operations and/or our ability
to meet our strategic objectives.
Spending pressure and reduced consumer confidence as a result
ofacontinuing difficult economic environment and political volatility
could negatively impact the demand for our products and services.
This could also impact our level of investments in our strategic priorities.
If governments try to reduce their budget deficits through further
taxation, this could create additional burdens on businesses.
Risk trend
Despite the evolving competitor landscape, our banners in the UK, France
and Poland have performed in line or ahead of their respective markets.
Link to strategic priorities
—
Grow by building on our different banners.
— Develop our trade business.
— Accelerate e-commerce through speed and choice.
— Build a data-led customer experience.
— Differentiate and win through own exclusive brands (OEB).
— Roll out compact store formats.
Risk trend
Political uncertainty remains high, especially following the US election
andrisk of global tariffs being imposed. The UK and French governments
have imposed higher taxes on businesses and this could increase further.
The economic environment will remain challenging across all our markets,
with continued inflationary pressure.
Link to strategic priorities
—
Grow by building on our different banners.
— Accelerate e-commerce through speed and choice.
— Differentiate and win through own exclusive brands (OEB).
How we manage and monitor the risk
We are building a differentiated offer and trialling new store
formats to serve customers even better through:
— Clear positioning for each of our banners, with different operating
models to address diverse customer needs, such as general DIY
needs, trade-focused and discounters.
— Leveraging the autonomy of local banners by allowing local ranges,
services and store formats that are tailored to customers’ needs.
— Tailoring trading actions to local markets, through distinct customer
communications, promotions and loyalty schemes, to increase sales
and brand loyalty.
— Increased our online sales and are continuing to extend our online
presence; we have successfully launched e-commerce
marketplaces in the UK, Iberia, Poland and France.
— Pursuing new revenue streams such as growing our retail media
proposition, currently in France and the UK, across the wider Group.
— Competing on price by using the scale of our Group to benefit
from volume and lower purchase prices.
— Centrally developing our OEB brands, with clearly defined range
principles and customer projects to create a differentiated and
compelling offer at each of the consumer price points (including
opening price points).
We regularly monitor our market share, our performance and that
of our competitors, to react quickly to disruptive behaviour via:
— Comparison of price indices versus competition in our key
categories, and measuring customer price perception on a
regular basis.
— Customer trend monitoring in all our markets to anticipate
anddevelop an appropriate offer.
— Monitoring net promoter scores (NPS) with targets to improve
thecustomer experience and satisfaction.
How we manage and monitor the risk
Monitoring and engagement activities
— Our Group Corporate Affairs team actively monitors the political
and economic situations in the countries in which we operate or
which may impact our operations. This is supported by membership
of key business trade associations in every market. We also
continuously monitor our exposure to financial institutions to
ensure our risk is minimised.
— Strategies are in place to identify, monitor and engage with
proposed changes to legislation that may impact our business.
— Incident and crisis management processes and teams are in place
tomonitor and manage situations as they arise.
— We actively monitor our sourcing from and dependency on large
suppliers by region.
Mitigation activities
— Our banner and Group sourcing offices work to diversify our
sourcing options where appropriate. Our buying offices and supply
chain teams are focused on ensuring we maintain appropriate levels
of competitively priced product available from alternative sources
through periods of potential disruption.
— Strong and distinct banners, with each able to set the right product
offer and pricing to meet our customers’ appetite for spending
and to respond in an agile, flexible way to changes in the environment.
— Our OEBs, which represent 44% of our sales, offer particularly
great value for customers in all our banners.
— Access to significant committed liquidity facilities and debt funding,
through drawn term loans and the ability to issue debt into the
capital markets through its European Medium-Term Note
(EMTN) programme.
— Cash holdings are diversified across a number of financial
institutions (for which credit risk is closely monitored).
— An appropriate and prudent mix of hedging policies, cash deposits
and debt financing to minimise the impact of foreign exchange
currency volatility on the company.
3
Competitor behaviour
4
Geopolitical instability creating
macroeconomicvolatility
Increasing No movement Decreasing
Risk trend:
1. The sale of Brico Dépôt Romania is expected to complete during first half
of FY 25/26, as announced on 18 December 2024.
Other Information
62 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Increasing No movement Decreasing
Risk trend:
Cyberattacks and security incidents continue to present a risk for all
organisations, including both Kingfisher and our vendors. Threats can
arise both externally and internally and could compromise sensitive
data or access to key operational systems.
Whilst Generative AI tools present opportunities for innovation and
growth, they could be used maliciously by bad actors to create more
compelling phishing attacks. If public Generative AI services are used,
commercially sensitive information may be inadvertently made public,
increasing the risk of data loss.
Failure to protect data, information and systems, detect breaches
andrespond accordingly would negatively impact our operations,
profitability and reputation.
The Group’s operations are subject to a broad range of regulatory
requirements in the markets in which we operate, and new regulation
continues to emerge. A major corporate issue or crisis, a significant
fraud or material non-compliance with legislative or regulatory
requirements would impact our brands and reputation, could expose
us to significant fines or penalties, and would require significant
management attention.
Risk trend
Despite our high focus on security, this risk remains one of our top
threerisks due to the current geopolitical situation with increased
state-backed activity. The sophistication and organisation of
cyberattacks also continues to evolve, with a wide range of tools and
techniques available to cause disruption to our business. In particular,
Generative AI tools are being used more in this sphere.
Link to strategic priorities
—
Accelerate e-commerce through speed and choice.
— Build a data-led customer experience.
Risk trend
The legal landscape in which we operate continues to evolve, with new
regulations and greater complexity. We continue to monitor the potential
impacts, as well as focusing on the internal controls, systems and
processes that support compliance.
Link to strategic priorities
—
Lead the industry in Responsible Business and energy efficiency.
How we manage and monitor the risk
— Cyber security continues to receive Group Executive-level
sponsorship and Board focus.
— Continue to make investments in support of our IT security roadmap.
— Assessments and exercises held to prepare for security incidents
up to and including Board-level.
— Recognising the importance of the role our colleagues play
in protecting the organisation, we deliver mandatory training
andphishing awareness tests are run for all colleagues to test
effectiveness.
— All technology development goes through a secure by design
process to ensure data, information and systems are secure
andadhere to compliance and regulation requirements.
— Perform security assurance of third parties that process our
data across all functions and banners.
— Regular review of the cyber threats facing Kingfisher and work with
security partners to evaluate and implement appropriate controls.
— Increased use of AI to strengthen existing technology capability
(e.g.end point protection and automated password management)
toprotect us against phishing, malware and other threats.
— Robust major incident management process in place, and we
maintain a third party retainer for incident response, breach,
and forensic expertise.
— Commissioned continuous independent assurance to monitor
progress against our strategy and alignment to Cyber Security best
practice standards, to ensure we meet our maturity milestones.
How we manage and monitor the risk
Policies and procedures
— Policies and procedures are in place, clearly stating our expectation
to carry out our business fairly and with complete integrity.
— Due diligence processes are in place over our third parties, covering
risks such as sustainability, business integrity, data protection and
information security as applicable. Internal audit conduct periodic
reviews of these processes.
— A whistleblowing policy and hotline, facilitated by an independent
third party, are in place across the Group. Speak Up Champions
have been appointed in all banners to ensure that all ethical
concerns raised via our whistleblowing system are followed up
and investigated appropriately.
Training and communication
— Targeted Group-wide mandatory compliance training is refreshed
annually, with modules on our Code of Conduct (including anti-
bribery and corruption), GDPR, Competition Law and Market
Abuse Regulation.
Oversight and reporting
— Our legal and compliance network enables teams in the Group and
banners to work and communicate together, and to monitor for
legislative changes that would impact our business, so that we
can respond appropriately.
— The Group Ethics and Compliance Committee (GECC) ensures
that the Group approach to ethics and compliance is adequate
and effective. This includes approving compliance training and
reviewing the outcomes of investigations. Local Ethics and
Compliance Committees (LECC) have been implemented in
all banners to ensure a consistent approach across the Group.
— The Disclosure Committee is in place to address our Market Abuse
Regulation obligations.
— Whistleblowing statistics and trends are monitored in each LECC
and reported to the GECC, Audit Committee and Board annually.
5
Cyber and data security
6
Legal and regulatory
63Kingfisher 2024/25 Annual Report and Accounts
Risks continuedRisks continued
Increasing No movement Decreasing
Risk trend:
Our customers, colleagues, suppliers, investors and the communities
we source from and operate in expect us to conduct our business
inaway that is responsible and in everyone’s long-term interest.
Oneof the many ways we strive to ensure this is through our publicly
communicated Responsible Business strategy and targets, covering
topics such as how we help our customers’ homes become more
sustainable, responsible sourcing, how we bring greater diversity into
the business and support our local communities. We are also promoting
more sustainable products with less environmental impact.
We expect everyone working for us or with us to carry out our
business professionally, fairly and with complete integrity. For further
details see pages 26 to 29 of the Responsible Business section.
Failure to deliver on our obligations and commitments, material
breaches of our policies or controls, or unintentional controversial
statements, could undermine trust in Kingfisher, damage our
reputation and impact our ability to meet our strategic objectives.
Climate change will have negative consequences on society and
businesses without concerted mitigation efforts. We have identified
several climate-related transitional and physical risks in our TCFD
section (see page 36), which demonstrate a limited impact on our
activities over our three-year planning horizon. However, if climate
change solutions are not effective, these could present longer-term
negative consequences to our strategy and affect our ability to serve
our customers (including challenging our product availability, supply
chain, reputation and cost to operate).
In response to these challenges, we have a number of mitigating
actions, including setting ambitious climate change commitments.
Failure to deliver on our commitments could negatively impact
our operations and profitability over time, as well as causing
reputational damage.
Risk trend
The level of scrutiny and expectations from our stakeholders remains high
and the opportunity to provide an effective response is often limited.
Link to strategic priorities
—
Lead the industry in Responsible Business and energy efficiency.
— Agile and lean.
Risk trend
We have announced our new net zero target for Scope 3 by 2050
andnear term 2030 targets for Scope 1, 2 and 3. Scrutiny on the validity
and reliability of our response to climate-related risks remains high and
the risk position has not changed.
Link to strategic priorities
—
Differentiate and win through own exclusive brands (OEB).
— Lead the industry in Responsible Business and energy efficiency.
How we manage and monitor the risk
Governance
— Our Code of Conduct establishes the core behaviours we
expect ofourselves and others, including our suppliers.
— The Responsible Business Committee leads and oversees the
delivery of the Responsible Business strategy. It is chaired by
anon-executive director and includes the CEO.
— We are evolving our framework for responding to societal
andgeopolitical issues and also have specific policies relating
tocorporate affairs and external communications.
Stakeholder dialogue
— Monitoring of external stakeholders’ views of the Group and all
banners through traditional and digital media.
— For all colleagues we have regular engagement surveys, strong
relations with relevant social partners and colleague fora with
elected representatives, including a collective forum that meets
with the CEO and members of the Board. This is in addition to
our I&D affinity networks that facilitate debate and discussion
on sensitive issues.
— Externally, we have regular engagement with a range of stakeholders
including NGO partners, trade associations, politicians, civil servants,
media, etc. in our key markets, which helps to ensure that the
company remains close to social and environmental concerns.
Due diligence and external assurance
— Our due diligence of suppliers and partners covers a
range ofESG issues, from environment to modern slavery.
— Selected ESG data in our annual Responsible Business Report
andour Modern Slavery Transparency Statement is independently
audited by DNV.
— Independent ratings agencies also monitor and rate our ESG
performance throughout the year, including MSCI, CDP,
Sustainalytics and ISS ESG.
How we manage and monitor the risk
— We have a longstanding commitment to reduce our emissions, with
science-based targets for FY 25/26 across all Scopes. We have also
set new science-based targets for near term emission reductions
by 2030, and net zero by 2040 for Scope 1 and 2 and 2050 for
Scope 3
1
, which is supported by a climate transition plan.
— For governance the Group Climate Committee, chaired by the
CEO, has oversight of the company’s approach to developing and
delivering its net zero roadmap and related supporting targets and
opportunities, and the Board’s Responsible Business Committee
supports and oversees the delivery of the Group’s Responsible
Business strategy, including how we tackle climate change.
— Decarbonisation planning is integrated into each banner’s
capital investment plans.
— We have aligned our climate-related ambitions with our financial
performance by linking the delivery of our sustainability targets
(including our Scope 1 and 2 targets) to our £650 million Revolving
Credit Facility, and to the outturn of our Performance Share Plan.
— We have a Sustainable Home Products (SHP) sales target,
to maximise business opportunities from the transition to a net zero
future. We have set a target for SHP to account for 60% of Group
sales by the end of FY 25/26 and 70% of sales of OEB products.
— We support a number of industry initiatives to tackle climate change,
including helping to launch a critical new collaborative Scope 3 task
force, initiated by EDRA/GHIN (the global trade bodies for home
improvement retailers).
For further information on how we continue to understand and respond
to these risks, see pages 36 to 41 of the TCFD section.
7
Reputation and trust
8
Climate change
1. Our new near term and net zero targets have been submitted to the
Science Based Carbon Initiative (SBTi) for validation.
Other Information
64 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Increasing No movement Decreasing
Risk trend:
The pace of change remains high, with greater use of e-commerce
solutions for click & collect and home delivery, and increasing
customer demand for greater choice and experience. To make our
products available to customers where and when they want them, we
need innovative digital channels supported by an agile and reliable
infrastructure, a robust logistics capability and an optimised property
portfolio, located where consumers want to shop, with in-store
services. We are also seeing increased demand for more sustainable
products, with greater attention to their energy and water-saving
features and their overall environmental impact.
Failure to identify and respond to new trends effectively and with
pace could affect our ability to stimulate spend and adversely impact
the value of our assets and our financial results.
Risk trend
Our commercial operating model affords banners autonomy,
enabling them to rapidly identify and react to changes in customer
trends. However, the risk remains if we do not deliver the required
changes fast enough or that they are not sufficiently compelling for our
customers. Wecontinue to invest in our technology (including generative
AI) and other solutions to help the banners to adapt at pace to meet the
ever-changing demands in customer expectations.
Link to strategic priorities
—
Grow by building on our different banners.
— Develop our trade business.
— Accelerate e-commerce through speed and choice.
— Build a data-led customer experience.
— Differentiate and win through own exclusive brands (OEB).
— Roll out compact store formats.
— Lead the industry in Responsible Business and energy efficiency.
— Agile and lean.
How we manage and monitor the risk
— The Customer and Market Intelligence team continuously monitors
andgathers insights, with regular updates to the Group Executive,
the Board and the wider business. We also have teams focused
oncustomer data and digital experience, so that we can better
understand the behaviour of our customers and provide them
with personalised omnichannel experiences.
— Based on customer and banner feedback, we extend and refresh
our OEB ranges, particularly in the area of sustainability
andenergy efficiency.
— A Group digital and data strategy has been developed and approved
by the Board, with various priority programmes underway.
— Our Technology Product board meets quarterly to monitor financial
and project portfolio performance and to prioritise upcoming
digital initiatives.
— Launched numerous strategic programmes to accelerate
e-commerce, focusing on putting stores at the centre of our
fulfilment model. We continue to expand the range of do-it-for-me
services available to customers to help them complete projects,
including offering energy diagnostic and project support services
in the UK, France and Poland.
— Our marketplaces in the UK, Iberia, Poland and France offermore
product choice to customers, reduce risks to availability and
follow consumer trends as part of the overall online marketplace
growth strategy.
— Retail media enables us to better understand and respond to
changing customer expectations. Through targeted advertising
anddata-driven insights, retail media helps us identify trends
in customer behaviour, optimise digital touchpoints and
enhance engagement.
— Monitoring of Customer NPS through targeted feedback surveys
and AI-driven sentiment analysis, capturing insights at key points
inthe customer journey. This data is combined with KPI dashboards
to identify opportunities for improvement, enabling us to respond
quickly to evolving customer expectations and enhance their
experience across digital and in-store touchpoints.
— Created a Group Centre of Excellence for online marketing
and digital trading that monitors digital consumers’ demand.
Throughexhaustive benchmarking of our e-commerce platforms
capabilities against our competitors, key areas of opportunity are
identified including to site speed, distribution order management
(DOM) and customer recommendations.
— Continued to develop our understanding of compact store formats,
with a variety of test concepts live in a range of locations across the
UK, France and Poland. As of 31 January 2025, we had 25 compact
store tests across four banners, providing us with strong learnings
for format optimisation and conceptualisation.
— Our product offer serves both tradespeople and home improvers,
which helps us proactively guard against any shifts in consumer
behaviour across both DIY and DIFM sectors.
— We continue to invest in our Sustainable Home Products to meet
changed customer preferences.
For further information on our approach to sustainable products see the
climate change risk onpage 64.
9
Responding to changing customer expectations
65Kingfisher 2024/25 Annual Report and Accounts
Viability statement
Assessment period
The directors consider three years to be appropriate given the
fast pace of change in both consumer and retail markets. This
is consistent with the Group’s strategic planning period and the
period over which the principal risks are considered. The period
to full implementation and impact for new ranges, stores and
technology investments is up to three years. In addition, there
are no major renewal or investment commitments expected that
go above the current investment level (at most around 3.5% of
revenues) beyond the three-year period. The Group’s debt
repayment profile is not relevant due to the low levels of debt,
and the revolving credit facility (RCF) has a three-year horizon.
Assessment of prospects
The directors regularly assess the Group’s current and future
financial position, its recent and historical financial performance,
and forecasts against the strategy, business model and principal
risks described on pages 61 to 65. In addition, the directors
regularly review the financing position of the Group and its
projected funding position and requirements, including
sensitivity analyses.
The Group is operationally and financially strong and has a long
track record of consistent profit and cash generation, which
isexpected to continue in the short and long term.
1
In its assessment of the Group’s prospects, the Board has
considered the following:
— The Group’s strategy and how it addresses changing
customer preferences. We continue to deliver against
our strategic and operational objectives and to invest
for growth. We have increased penetration of trade sales
across all our banners, supported by dedicated in-store
trade teams, the strengthening of our e-commerce
proposition and the launch of TradePoint’s first mobile app.
E-commerce sales penetration increased, supported by the
continued strong growth of our marketplaces, allowing us to
offer more choice to customers and increase digital market
share. We have a low-cost fulfilment model utilising our
store-based picking, and a low returns rate. Our strong
omnichannel proposition aligns with how customers want
to shop. We remain confident in both our long-term growth
and cash generation opportunities.
— The inherent resilience of the Group’s activities. The
Group operates in diverse geographies and customer
segments, with a strong competitive position. Many of
our products are of an essential nature. We have balanced
exposure to both do it yourself (DIY) and do it for me (DIFM)
sides of the market and a significant proportion of our sales
is linked to repairs and maintenance. Our geographic spread
provides us with the ability to withstand political instability
or economic downturn in a particular country. We have a
diverse product portfolio, including own exclusive brands
(OEB) which form a signification proportion of total sales,
and have a diversified sourcing footprint (both near and
far sourcing).
— Expectations of the future economic environment. Recent
political and macroeconomic developments have layered
incremental uncertainty onto the near-term outlook across
our markets. Governments have put additional burdens
on businesses to recoup fiscal deficits through increased
employers’ social charges and taxes. Interest rates remain
high and there is a risk of continued inflationary pressure.
Despite the impact of increased consumer uncertainty, all
our banners in the UK, France and Poland performed in line
with or ahead of their respective markets. Demand from
tradespeople remains robust, with more work in the trade
pipeline. As a Group, we are strongly positioned to benefit
as the home improvement market inflects. Industry trends,
including investments in sustainability, working from home
and a greater interest in the market from younger
generations, will endure and provide the opportunity
for sustained long-term growth.
— The Group’s financial position. The Group retains a
strong financial position; as of 31 January 2025, Kingfisher
had access to £986 million of liquidity, comprising cash
and cash equivalents (net of bank overdrafts and including
cash held for sale) of £336 million and access to an undrawn
Revolving Credit Facility (RCF) of £650 million (which
expires at the end of May 2027). The RCF has two one-year
extension options and the modelling assumes this is
renewed at a similar level (deemed highly likely). This level of
liquidity is deemed sufficient for all of the viability scenarios
analysed. The Group has low levels of debt and proven
robust performance and cash generation in previous
recessions. The Board considers this headroom, coupled
with the highly cash generative nature of the business, to
provide a strong degree of financial resilience and flexibility.
— Supplier and supply chain resilience. The Group’s supply
chain has remained resilient through recent geopolitical
uncertainty, and product availability continues to improve.
While we have some dependency on far-sourced products
from Asia, we reduce this risk through dual-sourcing key
OEB products whilst also ensuring business continuity plans
are updated regularly, covering internal points of failure
and key partner service-continuity plans. Our supply chain
visibility tool provides upstream visibility of our supply
chain and we continually look to optimise lead times
and inventory levels.
— Climate change. We have continued to see strong sales of
energy efficient products, helping our customers reduce
their carbon footprints. Our Green Star initiative helps
customers identify products with a reduced environmental
impact. The Group has set ambitious targets as part of our
Responsible Business agenda, including our new net zero
target for Scope 3 by 2050. We continually analyse the risk
of climate change on our operational activities and take
appropriate action where necessary.
Taking these factors into account, we have shown that our
business model is resilient and we are confident that our
strategy provides a strong foundation for sustainable
long-term growth.
1. This viability statement should be read in conjunction with the description of
the Group’s strategy and business model, which are set out on pages 6 to 15.
Other Information
66 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Assessment of viability
To assess our viability, we have modelled several severe but
plausible scenarios which would have the most material impact
on our liquidity. These were identified by considering how our
principal risks could materialise either individually or in combination,
impacting the business both operationally and financially.
In total, four severe but plausible individual scenarios have
been modelled, in addition to a fifth ‘collective’ scenario. The
latter considers the combined impact of scenarios 1, 3 and 4
detailed below, to model a worst-case situation. Theoretically,
allthese scenarios could run together, with different impacts.
Although the causes are different, the potential impact of scenario
2 (production and supply chain disruption) is similar to scenario 3
(further economic downturn) and overlaying it on the collective
scenario would not make a material difference to the results.
The legal and regulatory risk was not specifically modelled as it
could result in a significant financial penalty and related financial
pressure similar to scenario 1 (demand/operational shock). An
aspect of climate change has been modelled in scenario 2
(production and supply chain disruption) but it should be noted
that the additional investments being made to realise our climate
targets are already included in the base financial projections.
None of the scenarios modelled, including the more extreme
and unlikely aggregated scenario, were found to impact the
long-term viability of the Group over the assessment period.
In assessing each of the scenarios, we have taken account of
the mitigating actions available to us, including, but not limited to:
— reducing discretionary operating spend;
— reducing non-committed capital expenditure;
— renegotiating prices and payment terms with suppliers;
— freezing recruitment and reducing variable incentives; and
— temporary suspension of dividend payments or
share buybacks.
Having assessed our current position, principal risks and
prospects of the Group and considering the assumptions below,
the directors confirm they have a reasonable expectation
that the Group will be able to continue in operation and meet its
liabilities as they fall due over the three-year assessment period.
Scenarios modelled Links to principal risks
Scenario 1 – Demand/operational shock
The whole of Kingfisher’s operations become subject to a material and unexpected reduction in demand or operational
disruption resulting in reduced sales for a period of time (e.g. a failure ofourglobal IT infrastructure, with operational
and/or reputational damage).
Assumptions
Sales: Reduced sales during our peak period (a shock with an initial two-week sales impact of 75%, reducing to 25%
thefollowing two weeks), followed by a two-week period of recovery before normalising.
Margin: Margin rate reduced by 2% due to the loss of sales and impacts of fixed distribution costs during disruption period.
Cost: Minimal cost savings due to the acute nature of the event.
Inventory: Limited adjustment opportunity given lead times.
Risk 4: Geopolitical
instability creating
macroeconomic volatility.
Risk 5: Cyber and
data security.
Risk 7: Reputation and trust.
Scenario 2 – Production and supply chain disruption
Our suppliers and supply chain continue to be affected through 2025/26 and into 2026/27 by an event which impacts
production or supply. Stock availability is severely reduced in several key product categories and logistics costs are
significantly increased for others. Suppliers are not able to support the increased sales volumeson key ranges.
Assumptions
Sales: Negative sales impact in years 1 and 2 of 2% for our larger stores and up to 4% for our smaller stores
(more affected due to limited range depth so fewer alternatives).
Margin: Margin rate reduced by 1% due to the loss of sales and increased shipping and transportation costs.
Risk 2: Supply chain
resilience.
Risk 4: Geopolitical
instability creating
macroeconomic volatility.
Risk 8: Climate change.
Scenario 3 – Further economic downturn
Prolonged and further downturn in economic conditions across Europe with lower economic activity, higher
unemployment and higher inflation resulting in changing customer behaviours, reduced consumer confidence
andlower spending. Customers become more price sensitive, and price reductions impacting margins are required
tomanage overstocks. Suppliers of key ranges default on their supply commitments.
Assumptions
Sales: Year-on-year sales reduction of 5% for a period of 12 months followed by a 6 month period of stabilisation
before resumption of growth.
Margin: Margin rate reduced by 1% from lower sales and pricing pressure for a period of 24 months, followed
byrecovery in the third year.
Risk 4: Geopolitical
instability creating
macroeconomic volatility.
Scenario 4 – Failure to execute our strategy
We continue to implement our strategy, including planned investments, but this fails to deliver the expected sales
growth and margin enhancement. In addition, there is a failure to realise cost-reduction targets.
Assumptions
Sales: Non-delivery of planned sales growth from initiatives included in the three-year plan.
Margin: Non-delivery of margin increases linked to growth in OEB product sales.
Costs: Non-delivery of efficiency benefits.
Risk 1: Our people.
Risk 3: Competitor
behaviour.
Risk 9: Responding to
changing customer
expectations.
Scenario 5 – A combination of scenarios 1, 3 and 4
This represents a demand or operational shock, resulting in a short period of reduced revenue, followed by
afurthereconomic downturn. At the same time, our strategy fails to deliver the planned benefits. This is seen
asaworst-case scenario and highly unlikely.
As indicated in the
above scenarios.
67Kingfisher 2024/25 Annual Report and Accounts
Going concern
The Group’s business activities, together with the factors likely
to affect its future development, performance and position are
set out in the Strategic Report, including the principal risks of
theGroup set out on pages 61 to 65. The financial position
ofthe Group, its cash flows, liquidity position and borrowing
facilities are described in the financial review on pages 47 to 55.
In addition, note 25 of the Group financial statements includes
the Group’s financial risk management objectives and exposures
to liquidity and other financial risks.
The directors have considered the above and how they may
impact going concern as well as the modelling of a remote
scenario which assesses the impact on the Group’s liquidity
headroom ofa significant demand or supply shock preventing
us from realising a large part of our sales over the period of a
month followed by subdued demand for the remainder of the
year. As a result of this review, the directors have a reasonable
expectation that the company has adequate resources to
continue in operational existence for the foreseeable future, a
period of at least 12 months from the date on which the financial
statements are authorised for issue, andconsider it appropriate
for the Group to continue to adopt the going concern basis of
accounting in preparing the annual financial statements. Further
details in relation to the use of the going concern assumption
and the scenario modelled by the directors are detailed in note 2
of the Group financial statements.
Strategic Report approval
The Strategic Report was approved by a duly authorised
Committee of the Board of Directors on 24 March 2025
andsigned on its behalf by:
Thierry Garnier
Chief Executive Officer
24 March 2025
Other Information
68 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Chair’s statement
In January, we were also very pleased to welcome Ian McLeod
as a non-executive director. Ian is a seasoned retail executive
with over 40 years of experience across various different
international markets, including as CEO of a number of listed
businesses. Ian has had a long and distinguished career in retail,
and the depth of experience that he will bring will help support
the execution of our strategic initiatives. We are delighted to
be welcoming Ian to our Board and look forward to benefiting
from the new and valuable perspectives he will bring to the
Board’s discussions.
During the year, we also announced that our CFO, Bernard Bot,
would retire from the Board in January 2025. Bernard has
been integral to the transformation of our business under the
‘Powered by Kingfisher’ strategy and played a key role in leading
us through the challenges of the pandemic. He has helped us to
become a more agile and productive company, reducing costs
and unlocking efficiencies, while investing for growth and
delivering attractive shareholder returns. He will leave a very
strong legacy to build on. After a thorough search process, we
were pleased to announce Bhavesh Mistry as Bernard’s successor.
Bhavesh has extensive finance and retail experience, along with
a strategic mindset and an outstanding record of achievement.
Additionally, his people-centric leadership will align well with our
organisational culture. We are privileged to welcome someone
of Bhavesh’s calibre to our Board, where he will undoubtedly be
a valuable asset.
As a Board, we firmly believe that a better world starts with
better homes, and we are committed to supporting the business
as it strives to help make that happen through our ‘Powered
by Kingfisher’ strategy. Fundamental to the execution of that
strategy and delivery of our purpose is a good governance
structure that enables the right decisions to be taken at the
right time and by the right people. On the following pages, we
set out how the company is run to serve our customers, to look
after our colleagues as a responsible employer, to support the
communities in which we operate, and to protect our business
for the long-term. I believe that we have a great business, with
differentiation across our retail banners which acts as a unique
strength for us in a volatile and uncertain world. Combined with
leading-edge technology, digital and data capabilities, and buying
scale, we are well positioned to invest for growth in multiple
areas, underscoring our confidence in the medium to longer-
term outlook.
Finally, I would like to thank all of our customers, suppliers,
communities and investors that make Kingfisher such a great
company, but above all thank you to our colleagues for their
continued hard work, passion and dedication to what we do.
Claudia Arney
Chair of the Board
24 March 2025
Dear Shareholder,
I am pleased to be introducing our Governance Report for the
first time since becoming Chair in June 2024. On behalf of the
Board, I would like to thank Andrew Cosslett for his outstanding
leadership as Chair and his extensive contributions to Kingfisher
during his seven-year tenure, through what was a period of
important change for the company. You can read more about
the succession process, led by Catherine Bradley, our Senior
Independent Director, on pages 77 and 78.
Whilst the market environment for retail remains challenging, we
as a Board are continuing to focus on what is in our control and
supporting Thierry and his team in the execution of our strategic
initiatives. Against this backdrop, it is vital that we maintain the
right balance of skills and experience to deliver on our priorities.
Therefore, a key focus area for the Board and the Nomination
Committee during the year was on succession-related activities
and we are pleased to have made some high-calibre
appointments to the Board during the year.
As announced in December, Rakhi Goss-Custard has now
served as a director for nine years and will step down from
the Board at the AGM in 2025. I would like to thank Rakhi for her
many contributions and valuable insights to Kingfisher over the
last nine years, and in particular for stepping in as Remuneration
Committee chair last year and overseeing the review of our
remuneration policy. At the same time, I was delighted to
welcome Lucinda Riches to the Board as a non-executive
director and successor to Rakhi as Remuneration Committee
chair from the conclusion of our AGM later this year. Lucinda is
highly experienced, having served in several roles as a non-
executive director, board chair and remuneration committee
chair across multiple sectors, following a distinguished senior
executive career in investment banking. Her experience will be
invaluable as we continue to support our management team to
drive Kingfisher’s strategy forward, as well as making her an
excellent choice as Remuneration Committee chair.
In addition, Catherine Bradley has decided not to stand for
re-election at the AGM in order to reduce her governance
portfolio and dedicate additional time to her other roles,
including as non-executive chair of interactive investor (ii).
Whilst Catherine will be remaining on the Board until our AGM in
June, I would like to thank her for her many contributions to the
company over the past four years, both as Senior Independent
Director and as the Board representative on the Kingfisher
Colleague Forum. Catherine led the Chair succession process
and played a pivotal role in ensuring that the company had
continuity of leadership at an important time in our strategic
journey. As announced on 21 March 2025 the Board was pleased
to confirm that Lucinda Riches will succeed Catherine as Senior
Independent Director at the conclusion of the AGM and views
that the appointment will be complimentary to her role as
Remuneration Committee Chair.
69Kingfisher 2024/25 Annual Report and Accounts
Corporate governance
The Kingfisher plc Board
Responsible for the overall leadership of the Group, the Board defines our purpose, values, and strategy and aligns them
withourculture.Considering the views of our key stakeholders, the Board promotes the Group’s long-term sustainable
successanditscontributionto wider society. It is also responsible for the Group’s performance
and governance oversight.
Our governance structure
Our structured framework comprises the Board and its committees, and enables the company and our directors to work effectively.
Group Executive
Comprises the CEO and his direct reports, including the CFO, banner CEOs, and certain functional leads. This group meets monthly,
excluding August, to support and advise our CEO to develop and implement the strategic direction of the Group and its constituent
businesses, to make andimplement operational decisions, and, where appropriate, make Board recommendations.
Group Investment Committee
Chaired by the CFO, this group approves all capital and revenue expenditure above the threshold reserved for approval
at the banner or Group Function level. Authority for approval for such matters also resides with the CEO.
Group Climate Committee
Monitors and agrees our emission reduction commitments and net zero roadmap. Oversees our external reporting
on climate-related matters, and assesses and manages our climate-related risks and opportunities.
Nomination
Committee
Manages the
composition of
the Board and its
committees, as well
as succession
planning for
the Board and
senior management.
Report can be found
from page77.
Remuneration
Committee
Ensures rewards
are linked to our
wider strategy and
recognises success.
Report can be found
from page 88.
Responsible
Business
Committee
Oversees delivery
ofour Responsible
Business activities,
providing collective
advice and support.
Report can be found
from page81 with
additional reporting
from page26.
Audit Committee
Oversees the integrity of our financial and
narrative reporting, the effectiveness of our
internal controls, risk management and audit,
and reviews compliance matters.
Report can be found from page83.
Disclosure Committee
Responsible for the framework we use to
identify, manage, and release inside information.
Other Information
70 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Board attendance
Directors’ attendance at Board meetings during the year is
set out below. Directors who are unable to attend scheduled
meetings are encouraged to input in advance. Detail regarding
information flows to the directors can be found in the Corporate
Governance Statement on our website www.kingfisher.com/
corporategovernance.
Current directors Board
Claudia Arney 8/8
Catherine Bradley 8/8
Jeff Carr 8/8
Thierry Garnier 8/8
Sophie Gasperment 8/8
Rakhi Goss-Custard 8/8
Bill Lennie 8/8
Ian McLeod
1
1/1
Bhavesh Mistry
1
1/1
Lucinda Riches
1
1/1
Former directors who served during 2024/25
Bernard Bot
2
7/7
Andrew Cosslett
3
3/3
1. Ian McLeod, Bhavesh Mistry and Lucinda Riches were appointed to the
Board in January 2025.
2. Bernard Bot stepped down from the Board on 13 January 2025.
3. Andrew Cosslett stepped down from the Board on 20 June 2024.
In addition to the scheduled meetings reflected in the table
above, four ad hoc Board meetings were held during the year.
Compliance with the UK Corporate
Governance Code
Kingfisher complied with the Financial Reporting Council (FRC)
2018 UK Corporate Governance Code (the Code) during the
year ended 31 January 2025. Legacy Delivering Value Incentive
awards, which predate the current Directors’ Remuneration
Policy adopted at the 2022 AGM, do not have phased vesting
and did not comply with Provision 36 at the time of grant.
Further details of these awards can be found within the 2019 Notice of
AGM and the Annual Report and Accounts published from 2018/19
onwards. The Code is available to view at www.frc.org.uk
At the company’s 2024 AGM, the Board was pleased to see a
high level of engagement from shareholders with nearly 90 per
cent of shares in issue being voted and all resolutions passed by
poll by the requisite majority. However, the Board also noted that
there were 20.76% of votes cast against Resolution 15 (Authority
to allot shares).
In accordance with the Code, the company has consulted with
its major shareholders and understands that some, as a matter
ofpolicy, do not support resolutions giving companies a general
authority to allot shares without further approval from shareholders.
The company will continue to take into account the views of its
shareholders and will keep the authorities it intends to seek
under review.
The table below outlines how Kingfisher applied the principles
and complied with the provisions of the Code which may also
befound in the Corporate Governance Statement (CGS) at
www.kingfisher.com/corporategovernance. Our website also
hascopies of Matters Reserved for the Board, as well as profiles
for the Chair, non-executive director, and other relevant roles.
1. Board leadership and company purpose Page no. or document
Effective and entrepreneurial Board 19 – 25, 30-31, 60 – 68
CGS, Matters Reserved
Purpose, value and strategy 6 – 7, 14 – 15, CGS
Resources and controls CGS
Engagement with stakeholders 19 – 24, CGS
Workforce policies and practices 16 – 18, 28 – 29, CGS
2. Division of responsibilities
Role of the Chair CGS, role profiles
Composition of the Board 72 -73, CGS
Role of the non-executive director CGS, role profiles
Board information, time and resource 70, 76, 77-80, CGS
3. Composition, succession andevaluation
Appointment to the Board 77 – 80, CGS
Board composition 72 – 74, 77 – 80, CGS
Board evaluation 76, CGS
4. Audit, risk and internal control
Internal and external audit functions 85 – 87, CGS
Fair, balanced and understandable 83, 123, CGS
Risk management 60 – 65, 86 – 87, CGS
5. Remuneration
Aligning remuneration to strategy 88 – 119, CGS
Policy for executive remuneration 93 – 101, CGS
Independent judgement 103, CGS
71
Kingfisher 2024/25 Annual Report and Accounts
Claudia Arney,
Chair of the Board, June 2024
Appointed: November 2018
Skills and experience: Claudia brings a wealth of experience of
business transformation and building digital capabilities to the
Board having previously held non-executive roles, including
interim chair of the Premier League, senior independent director
of Telecity Group plc, chair of the remuneration committee at
Halfords plc, non-executive director at Ocado Group plc, and
non-executive director and governance committee chair at
Aviva plc. Claudiabegan her career at McKinsey & Company,
before holding roles at Pearson, the Financial Times, Goldman
Sachs, and HM Treasury. She was also group managing director,
digital at EMAP.
External appointments: Claudia is currently chair of Deliveroo
plc, serves as a member ofthe Panel on Takeovers and Mergers
and is the lead non-executive board member for the
Department for Digital,Culture, Media and Sport.
Thierry Garnier,
Chief Executive Officer
Appointed: September 2019
Skills and experience: Thierry spent 20 years in senior roles
at Carrefour, the French multi-national retailer. Before joining
Kingfisher, he was a member of the Carrefour group executive
committee and CEO of Carrefour Asia. From 2003 to 2008,
Thierry was the managing director of Supermarkets for
Carrefour France. Following his success in this role he became
CEO of Carrefour International and a member of the group
executive committee in 2008, where he became responsible
for operations in Asia, Latin America and various European
countries. In 2016, Thierry was awarded the Chevalier de
l’Ordre National de la Légion d’Honneur (France).
External appointments: Thierry is a non-executive director
ofTesco plc and the president of EDRA/GHIN, the European DIY
Retail Association and the Global Home Improvement Network.
Bhavesh Mistry,
Chief Financial Officer
Appointed: January 2025
Skills and experience: Bhavesh brings extensive finance and
retail experience gained in senior roles across a range of listed
businesses, most recently at British Land, where he served
as CFO from 2021. Prior to joining British Land, Bhavesh was
Deputy Chief Financial Officer at Tesco PLC. He has previously
held senior finance and strategy roles in a range of consumer-
facing businesses, including Whitbread Hotels and Restaurants,
Anheuser Busch InBev and Virgin Media. Bhavesh qualified as
a Chartered Accountant with KPMG and holds an MBA from
London Business School.
External appointments: None
Board of Directors
Catherine Bradley CBE,
Senior Independent Director
Appointed: November 2020
Representative to the Kingfisher Colleague Forum:
From June 2022
Skills and experience: Catherine provides substantial expertise
to the Board in the fields of finance, risk management and
corporate governance, having previously been a non-executive
director of the Financial Conduct Authority, the UK financial
regulator, where she chaired its audit committee. Catherine also
served as a non-executive director of abrdn plc until April 2024
and as an independent member of the supervisory board of
Peugeot S.A. where she chaired its finance and audit committee.
Prior to embarking on her non-executive career, Catherine had
a 30-year career in investment banking based in the US, the
UK and Asia. She has French and British citizenship and was
appointed a Commander of the Order of the British Empire
(CBE) in June 2019.
Catherine will step down from the Board at the conclusion of the
2025 AGM.
External appointments: Catherine is a non-executive directorof
easyJet plc where she chairs its finance committee. She is also
currently a non-executive director and chair of the nomination
and corporate governance committee at Johnson Electric
Holdings Limited, a Hong Kong listed company. Catherine
also serves as chair of interactive investor (ii), a wholly owned
subsidiary of abrdn plc. She is a non-executive director of
Worldpay (UK) Limited.
Jeff Carr,
Non-Executive Director
Appointed: June 2018
Skills and experience: Jeff brings substantial international
finance experience to the Board, particularly within the
consumer and retail sectors. Until the end of March 2024,
Jeff served as CFO of Reckitt Benckiser Group plc, a British
multinational consumer goods company with operations in over
60 countries and a large number of globally trusted household
brands and products. Jeff also held an executive finance role
with Reckitt earlier in his career. Prior to joining Reckitt, Jeff was
CFO of Koninklijke Ahold Delhaize N.V. (Ahold Delhaize), one of
the world’s largest retail groups. Jeff was also previously group
finance director at both FirstGroup plc and easyJet plc, and held
a senior finance role at Associated British Foods plc, as well as a
non-executive director role at McBride plc.
External appointments: Jeff is a non-executive director of Tate
and Lyle plc.
Key:
Chair Audit Committee Nomination Committee Remuneration Committee Responsible Business Committee
Other Information
72 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Sophie Gasperment,
Non-Executive Director
Appointed: December 2018
Skills and experience: Sophie brings to the Board expertise in
strategy, brand and international retail markets as well as substantial
experience in business transformation and digital capabilities,
having held a number of senior leadership positions at L’Oréal,
including managing director of L’Oréal UK & Ireland, and executive
chair and global chief executive officer of The Body Shop, as
well as 12 years as non-executive director at Accor where she
chaired the Nominations, Remunerations and CSR Committee.
External appointments: Sophie is a senior advisor at theBoston
Consulting Group. She is also a non-executive directorof
GivaudanS.A., and an independent director of Cimpress plc,
aNASDAQ-listed technology company.
Rakhi Goss-Custard,
Non-Executive Director
Appointed: February 2016
Skills and experience: Rakhi is an experienced non-executive
director, with expertise in digital retailing, strategy, analytics, and
operational execution. She spent 12 years at Amazon in various
senior leadership positions running many of Amazon’s key categories,
including high-growth, mature and digital categories, in addition
to being responsible for pricing across the UK. Prior to joining
Amazon, Rakhi held roles at TomTom and in management
consultancy in the United States. She was previously a non-
executive director of Intu Properties plc and Rightmove plc.
Rakhi will step down from the Board at the conclusion of the
2025 AGM.
External appointments: Rakhi is a non-executive director of
Schroders plc. She is also a non-executive director of Trainline
plc where she chairs the remuneration committee.
Bill Lennie,
Non-Executive Director
Appointed: May 2022
Skills and experience: Bill brings substantial industry experience
to the Board, having spent 26 years at The Home Depot, Inc.,
the largest home improvement company in the world, where
he had an outstanding track record of delivery, supporting the
company’s remarkable growth during this period. Bill was most
recently executive vice president, outside sales and services at
Home Depot and retired in 2021. During his time there, he held
many senior leadership roles including president, Canada and
senior vice president, international merchandising, private
brands, and global sourcing. Bill has a deep knowledge of
merchandising and global sourcing, and experience in developing
successful trade and services strategies. Before his time at
Home Depot, Bill was merchandising manager for Lowe’s
Companies Inc. and millwork plant manager for Menards Inc.
External appointments: None
Lucinda Riches,
Non-Executive Director
Appointed: January 2025
Skills and experience: Lucinda is a highly experienced non-
executive director, having served in several roles as board chair
and remuneration committee chair across multiple sectors. Prior
to becoming a non-executive director, Lucinda had an executive
career in investment banking at UBS where she was Global Head
of Equity Capital Markets and a member of the board of UBS
Investment Bank. Her previous non-executive director roles
include CRH plc, ICG Enterprise Trust plc, the British Standards
Institution, Diverse Income Trust plc and UK Financial
Investments Ltd.
External appointments: Lucinda is currently the independent
non-executive chair of Greencoat UK Wind plc and Peel Hunt
Limited. She is also a non-executive director of Ashtead Group
plc, where she chairs the remuneration committee. Lucinda has
confirmed that she will be stepping down from one of her other
listed positions in autumn 2025. Please see page 80 for further
details of Lucinda’s time commitment.
Ian McLeod,
Non-Executive Director
Appointed: January 2025
Skills and experience: lan has over 40 years’ retail experience,
including 20 years in CEO positions leading multi-billion dollar
publicly traded or private equity-owned companies around
the world, developing specialist expertise in leading business
transformation and change management programmes globally.
lan’s leadership and board experience includes businesses such
as Asda and Halfords in the UK, Walmart International as well as
Carrefour in the Middle East. His CEO roles include Coles Retail
Group in Australia, Southeastern Grocers in the United States
and more recently the DFI Retail Group based in Hong Kong with
stores across 13 Asian markets, including key market franchises
for IKEA, 7-Eleven and Starbucks. In 2010, lan was awarded an
Honorary Doctorate in his native Scotland for his contributions
to business and retail.
External appointments: Ian is an operating partner with
Quadria Capital, a private equity firm specialising in healthcare
business investments.
73Kingfisher 2024/25 Annual Report and Accounts
Board composition
Board independence Board nationality Board diversity
20%
80%
5
2
3
Independent non-executive directors
Executive directors
Board tenure
Current
directors
Tenure at 31 January 2025
Claudia
Arney
6 years, 3 months
Catherine
Bradley
4 years, 3 months
Jeff Carr
6 years, 8 months
Sophie
Gasperment
6 years, 2 months
Rakhi
Goss-
Custard
9 years
Thierry
Garnier
5 years, 4 months
Bhavesh
Mistry
1 month
Bill Lennie
2 years, 9 months
Lucinda
Riches
1 month
Ian McLeod
1 month
Board biographies are set out on pages 72 and 73.
Director sector experience
1
Retail
9
Home improvement
sector
4
Digital
8
International
markets
7
Former CEO
3
Brand/marketing
5
Listed market
experience
6
Remuneration/HR
7
Finance
4
Sustainability
4
Matrix-model
business
2
6
1. To be counted for each skill area, a director is either required to have
sustained executive or senior management experience, or meaningful
non-executive experience.
2. Experience of multi-divisional/business unit model with responsibilities split
across regions and the centre.
US
French
British
Board diversity and ethnicity is set out on
pages 79 and 80.
Other Information
74 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
The table below sets out the key matters considered, and decisions taken during the year to promote the long-term success of the
company. The Board recognises its responsibility to consider the needs and concerns of our stakeholders as part of its discussion
and decision-making processes and seeks to deliver value for all our stakeholders. The company’s Section 172 disclosure is available
in the Strategic Report on pages 19 and 20.
Key activities of the Kingfisher plc Board in the year
Topic Board activity Key decisions
Strategy
— Reviewed progress against the ‘Powered by Kingfisher’
strategic objectives and priorities, considering
performance of strategic KPIs and agreeing subsequent
actions and focus areas.
— Discussed a broad selection of potential longer-term
strategic options and growth drivers to build on
the ‘Powered by Kingfisher’ strategy and drive
financial performance.
— Considered the trends and factors that are driving change
across home improvement and retail more broadly.
— Considered the level of ambition in e-commerce and data,
including marketplace and retail media.
— Continued to review opportunities, including franchise
operating models, new trade propositions and developments
in our OEB product ranges and store portfolios.
— Kept in focus the performance of our operations in France
including the ongoing expansion of Screwfix.
— Approved the sale of the Brico Dépôt Romania business.
— Approved the acquisition of certain former Homebase
leasehold stores in the UK and Ireland.
— Endorsed the divestment of NeedHelp.
— Endorsed the strategic priorities for 2025/26 for
banners and Group Functions.
— Approved the appointment of Claudia Arney, an
established non-executive director on the Board, as
the new Chair, to support continuity of leadership at
a critical time in Kingfisher’s strategic delivery.
Finance and
performance
— Reviewed Kingfisher’s progress through CEO and CFO
reports, including:
— market and trading updates and guidance, including
store and category performance;
— performance against budget and forecasts;
— dividend cover, and interim and final dividends; and
— cash flow, funding requirements, credit rating and
leverage targets.
— Approved the annual budget.
— Endorsed the three-year plan and capital
allocation policy.
— Approved the UK tax strategy and required disclosures.
— Approved the acceleration of the third share
buyback programme.
— Approved the revised determination of operating
segments for FY 24/25.
People, culture,
vision and values
— Non-executive directors spent time with colleagues
in stores and in banner offices to enhance their
understanding and see firsthand the culture
embedded across the Group.
— Reviewed progress against the 2024/25 People and
Culture plan, with regular culture updates through the
culture dashboard.
— Received regular reports and monitored the level of
health and safety incidents across the business.
— Received feedback from colleagues through the
Kingfisher Colleague Forum (KCF).
— Received an update on the community investments
made during 2023/24.
— Approved the refreshed company purpose.
— Approved the 2023/24 Responsible Business Report
for publication.
— Approved the Scope 3 net zero and emission
reduction targets.
— Endorsed the key priorities for 2025/26 for the People
and Culture Plan.
— Approved projected charitable donations to the B&Q
Foundation and Shelter for 2024/25 and 2025/26.
— Approved the Modern Slavery Transparency Statement.
Governance and risk
— Received Group valuation updates supported by our
brokers and corporate advisors.
— Reviewed feedback from investor and governance
roadshows and an independent investor perception
survey conducted during the year.
— Held an in-person AGM and engaged with major
shareholders on their reasons for voting against certain
authorities requested to allot shares.
— Reviewed the results and action plans resulting from the
annual supplier survey.
— Considered capital expenditure and investment decisions
taken by the Group Investment Committee.
— Received annual updates on the Group’s pensions and
insurance arrangements.
— Considered whistleblowing reported across the Group.
— Reviewed the Board’s performance in 2024/25 and
progress against the 2023/24 review actions.
— Received the annual information security update.
— In addition to the new Board Chair, approved
appointments of Bhavesh Mistry as the new
CFO, and Lucinda Riches and Ian McLeod as
non-executive directors.
— Approved changes to Board committee membership,
including the appointment of Lucinda Riches as
Remuneration Committee Chair from the 2025 AGM.
— Approved the Group’s principal and emerging risks and
risk appetite statement.
Board activities
75Kingfisher 2024/25 Annual Report and Accounts
Board effectiveness
2024/25 Board performance review
The Board and each of its committees conducts an annual
effectiveness review and, in line with the Code, thisisexternally
facilitated every third year. These reviews are conducted in
accordance with the Code and, among other things, include
consideration of the effectiveness of the Board to leverage
individual directors’ skills and experience, the collective value
from the Board’s overall composition, and the organisation
and running of Board and committee meetings to support
the directors in reaching a view of Board and committee
effectiveness during the year. In 2023 and 2024, the Board
performance reviews were conducted internally using the
Better Boards platform. In each year, the questionnaire was
tailored by the Chair and Company Secretary, and covered
the effectiveness of the Board, its committees and individual
directors. Responses were benchmarked against data available
through the platform and, in 2024, included a comparison against
the average scores from the 2023 review.
A detailed report was prepared by the Company Secretary and
considered by the Board along with progress against the actions
from the 2023 review. Directors concluded that the Board
continues to operate effectively and benefits from the trusted
relationship between the Board and executive leadership,
and that overall, Board discussions are open and constructive.
The Board determined to make small adjustments to further
refine the approach and future focus of the Board and increase
the depth of strategic discussion to ensure that the Board
consistently makes the most efficient use of non-executive
directors’ time and derives maximum value from the significant
expertise they bring to Kingfisher. The Board agreed the
following actions for 2025:
Actions to deliver in 2025/26
— Further refine our approach and preserve Board meeting time for
deep focus on items critical to the business, value creation and
strategic performance.
— Introduce different perspectives to the Board’s consideration
of key strategic topics to include more frequent dialogue with
the Group Executive and relevant external perspectives.
— Implement an annual programme of immersion visits to
support non-executive directors to get closer to the business,
more effectively.
As part of the process, the Chair met with each director,
supported by the tailored reporting following the Board review,
to drive further improvements in Board performance in 2025.
Catherine Bradley received separate reporting regarding
theoutcome of the Chair’s review. Based onthe review and
discussion with other Board members, it was concluded that in
her initial months as Board Chair, Claudia Arney had operated
effectively and that there were no concerns regarding
her performance.
The table below outlines progress against actions agreed during
the 2023/24 internal Board review.
Actions delivered in 2024/25
Joint vision and
alignment around
the goals and focus
of the Board
— A revised Board schedule and forward
agenda were developed with the Chair
andCEO, informed by the views of
non-executive directors and approved
inOctober 2024 for adoption from 2025.
— In May 2024, the mid-year strategy review
included more targeted presentations
and consistent progress reporting, with all
relevant areas of the business presenting
management roadmaps.
— In May and July 2024, Board meetings held
offsite included management presentations
focussed on key strategic priorities, in
addition to store, office, and product design
studio visits, and both informal and formal
colleague engagement sessions.
Further refine
the structure and
organisation of the
work of the Board
— In addition to the revised Board schedule
andforward plan, it was agreed to introduce
annual non-executive director immersion
visits where, in pairs, the directors will visit
achosen area of the business for a full day.
— Each Board meeting in 2024/25 concluded
with a non-executive director only discussion.
— Non-executive directors’ optional teach-ins
took place in 2024/25, including on retail
franchises, and a teach-in schedule for
2025/26 has been agreed.
— In May and July 2024, the Board meetings
included visits to Brico Dépôt HQ in
Longpont, France, and Screwfix head office
in Yeovil, respectively. In line with the revised
Board schedule, from 2025/26 one Board
meeting will be held offsite each year.
Other Information
76 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Dear Shareholder,
I am pleased to present my first Nomination Committee report
as Chair. As I have set out in my introduction to the Corporate
Governance Report, it has been a busy year for the Committee,
with both executive and non-executive succession processes
rightly dominating the Committee’s time. Having a Board that has
the right balance of experience, skills and knowledge is crucial to
ensuring that the company is led in a way that will enable it to
deliver on its strategic priorities and adapt with agility to the
trends and factors that can impact long-term success. I firmly
believe that the quality of the directors who have joined the
Board during the year is testament to the depth and thoroughness
of the succession and selection processes that the Committee
has led. You can read more about this on the coming pages,
along with our priorities for ensuring we have appropriate
succession plans in place for the future. The Committee will
continue to keep the composition of our Board and Committees
at the fore as we prepare for both Catherine Bradley and Rakhi
Goss-Custard to step down from the Board and their respective
roles at the conclusion of the 2025 AGM. Catherine and Rakhi will
be succeeded by Lucinda Riches who was appointed to the
Board in January (see page 78 for further information).
Claudia Arney
Chair of the Nomination Committee
24 March 2025
Nomination Committee report
In addition to the scheduled meetings reflected in the table
above, seven ad-hoc Committee meetings were held during
the year.
The Nomination Committee solely comprises independent
non-executive directors. Its terms of reference are reviewed
annually and are available on the company’s website. The
Committee Chair reports onits activities during each
subsequent Board meeting.
During the year, an internal evaluation of the Committee’s
effectiveness was undertaken as part of the broader evaluation
of Board performance. The evaluation concluded that the
Committee operates effectively and raised no areas of
immediate concern.
Further detail on the evaluation process can be found on page 76.
Non-executive director succession
In April 2024, the company announced that Claudia Arney
would succeed Andrew Cosslett as Chair of the Board from the
conclusion of the Company’s AGM. Claudia was appointed after
careful consideration and a thorough process, led by our Senior
Independent Director, with all Board members participating in
the discussions where it was appropriate to do so. Egon Zehnder
was appointed to facilitate the process which involved agreement
by the Committee on a role specification and extensive
consideration of a longlist of external and potential internal
candidates. Having considered the merits of both, including with
regard to time commitment, tenure under the UK Corporate
Governance Code and the composition of the Board more
broadly, the Board concluded that Claudia was the standout
choice. She is a highly experienced non-executive director
and a practiced Chair. Further, Claudia’s existing service on the
Kingfisher Board is considered to be an advantage, giving her an
existing depth of knowledge and an institutional understanding
of the business, its markets and strategic imperatives which,
together with her wider experience, leadership and judgement,
will be crucial as we drive our strategy forwards.
Membership and attendance
Eligible Attended
Claudia Arney
1
3 3
Catherine Bradley 3 3
Jeff Carr 3 3
Sophie Gasperment 3 3
Rakhi Goss-Custard 3 3
Bill Lennie 3 3
Ian McLeod
2
1 1
Lucinda Riches
2
1 1
Andrew Cosslett
3
1 1
1. Chair of the Committee.
2. Lucinda and Ian were appointed to the Committee with effect from
1 January 2025 and 20 January 2025 respectively.
3. Andrew stepped down from the Board and the Committee on 20 June 2024.
77Kingfisher 2024/25 Annual Report and Accounts
Nomination Committee report continued
As we disclosed in our 2023/24 Annual Report, the Committee
prioritised search processes for non-executive directors to
bolster the breadth of skills and knowledge on the Board, taking
account of the current size of the Board, the skills, tenure,
and diversity of its makeup, as well as the experience and
competencies that may be additive in the context of the
‘Powered by Kingfisher’ strategy. These processes are
underpinned by our skills and experience matrix which capture
and monitor the combined strategic and committee experience
considered relevant and appropriate for Kingfisher, as a UK-listed
company and an international, matrix-model retail business.
Following Claudia’s appointment to the role of Chair of the
Board, Rakhi Goss-Custard assumed the role of Remuneration
Committee Chair at the conclusion of the Company’s 2024
AGM. In view of this, the Committee agreed to redefine the
search criteria for non-executive directors in favour of an
experienced Remuneration Committee Chair, given that
Rakhi reached the end of her nine-year term in January 2025.
Following this process, which was facilitated by Egon Zehnder,
and consideration by the Committee of a diverse range of
candidates, the Board approved the appointment of Lucinda
Riches to the Board at the start of the year. Lucinda brings with
her extensive experience in both executive and non-executive
roles, including as a remuneration committee chair, and she will
succeed Rakhi in the role at the conclusion of the 2025 AGM.
As subsequently announced on 21 March 2025, Lucinda will also
succeed Catherine Bradley as Senior Independent Director at
that time.
Taking into account the assessment of skills on the Board, the
Committee also determined to recruit a non-executive director
to bring experience from across the consumer sector and
someone with recent CEO experience. Facilitated by Russell
Reynolds, who led an extensive search and selection process,
Ian McLeod was appointed to the Board on 20 January 2025
as a non-executive director. Ian is a seasoned retail executive
with over 40 years’ of experience across various international
markets, including a number of years as a CEO in a UK-listed
company. The Board looks forward to the new and valuable
perspectives that both Lucinda and Ian will bring to the Board.
Following these changes, both Ian and Lucinda are receiving
a full induction programme, and you can read more about this
below along with a summary of our approach to non-executive
director searches.
CFO succession
In June, we announced that Bernard Bot would retire from the
Board to further pursue his non-executive career, having spent
five years as the Company’s CFO. Supported by Egon Zehnder,
the Committee drew up a role profile for a highly capable and
well-rounded CFO candidate to build on the very strong legacy
that will be left by Bernard. Following a thorough search process,
Bhavesh Mistry was appointed as CFO with effect from January
2025. Bhavesh was the outstanding candidate in this process,
bringing a wealth of finance and retail experience, combined with
a strategic mindset and an excellent track record of delivery.
He is also a people-focused leader who will be a strong fit for
our culture.
The skills of our directors are summarised on page 74.
Overview of our search process
1. Board composition review
The Committee evaluates the structure, size and composition
of the Board and its committees, including the balance of skills,
knowledge, experience, diversity, and tenure of the directors,
taking into account the company’s business model, strategy,
and external environment. Wethen agree the search criteria
and engage with a search consultant to support.
2. Role brief development
A comprehensive role brief is prepared that is aligned to the
desired Board and Committee composition, our Board Inclusion
and Diversity Policy, and any other relevant corporate governance
requirements, including the timecommitment expected. All role
briefs should be free from bias.
3. Shortlisting
The company’s retained search consultants prepare an initial
longlist of candidates from a broad range of backgrounds for
discussion with the Committee. The Chair and Company Secretary
then coordinate with the search consultants to refine this into a
shortlist for further consideration by the Committee. We then
agree the candidates forinterview based on merit and against
objective criteria, whilst considering all types of diversity and the
time available to devote to the position. Where appropriate, the
Committee challenges the scope of the search and breadth of
the pool from which the longlist has been drawn.
4. Interview
Through a multi-stage interview process, every effort is made
to ensure that prospective candidates meet with all directors, by
committee where appropriate. Initial interviews will include the Chair,
CEO and SID and will be flexed as appropriate for the role in question.
After the first round of interviews, it is agreed which candidates
should be invited to participate in subsequent interview rounds.
5. Recommendation to, and approval by, the Board
Upon completion of the preceding stages, the Committee will
determine to conclude the search in favour of the preferred candidate
and new appointments will be approved by the Board.
Egon Zehnder and Russell Reynolds are accredited firms under the UK
Government’s Enhanced Code ofConduct for Executive Search Firms, and
signatories to the latest Standard Voluntary Code of Conduct for Executive
Search Firms (the Voluntary Code), supporting gender andethnic diversity
oncorporate boards. Egon Zehnder and Russell Reynolds do not have
any other relationship with the company or its directors.
Induction
Each new director receives a tailored induction to help
establish a clear understanding of the company’s operations
and challenges, aspirations, governance and culture. Delivery
is phased so that the induction can be customised at each step
based on the individual director’s feedback. As well as tailored
features, each induction programme includes:
— Individual one-to-one meetings with all directors,
the General Counsel and the Company Secretary.
— Meetings with members of the Group Executive, senior
members of Group Functions and banners, and may also
include the external auditors, brokers, legal advisers, and
some investors.
— Briefing on the activities of each of the Board’s committees.
— Introduction and ongoing access to the Board’s online
resources, including meeting minutes, key governance
andreference materials, and briefings on market status
andcompetition.
— Support to visit the company’s stores, office locations,
andkey sites across the business, as helpful.
Other Information
78 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Board inclusion and diversity
The Kingfisher Board believes in the value of inclusion and
diversity throughout the company. Kingfisher’s Group-
widePeople and Culture Plan is set out on pages 16 to 18,
including the gender diversity of senior management and
colleagues; the Committee supports the work undertaken
bymanagement to strengthen gender and ethnic diversity in
leadership, which continues to be a priority for the company.
The Kingfisher Board believes that it is in the company’s best
interests to have a diverse board that reflects the communities
inwhich we operate. A diverse board champions a culture that
isfullyinclusive and benefits overall board composition, board
effectiveness and decision-making.
As part of the new director search process, including the
searches concluded during the year, the Committee considers
thesearch pool to ensure it is sufficiently wide and covers
candidates with a mix of backgrounds and diversity that may
include race, disability, gender, sexual orientation, beliefs, and
age, as well as culture, personality, professional and educational
background, and work style. Appointments to the Board are
based on merit, while complementing and enhancing the existing
diversity of skills, knowledge, and experience of the Board as a
whole. The Committee always considers the current and desired
composition of both the Board as a whole, along with each of its
Committees, bearing in mind these considerations when making
a determination to conclude the search in favour of a preferred
candidate for the Board to consider. Kingfisher’s Board Inclusion
and Diversity Policy (the ‘Policy’), which is available on our
website, supports the Board in achieving this aim and we believe
the results below demonstrate our commitment to diversity
and provide clear evidence of our Policy delivering the desired
outcomes. The Committee will continue to keep the Policy under
review and monitor progress against our stated objectives to
ensure that we are able to maintain a diverse leadership
structure that reflects our customers and communities.
Statement on Board diversity targets
The Policy objectives align with the targets set out in UK Listing
Rule 6.6.6(9)R and the Committee is pleased to confirm that as at
31 January 2025, all three of the targets setoutwithin the Policy
and the UK Listing Rules have been met, asoutlined below.
— Maintain at least 40% female directors on the Kingfisher plc
Board. Target met; 50% of Board directors are women.
— Maintain at least one woman in a senior Board position
(Chair, Chief Executive Officer, Senior Independent
Director, or Chief Financial Officer). Target met; our
Board Chair and Senior Independent Director are women.
— Maintain at least one Board director from an ethnic minority
background. Target met; two Board directors are from an
ethnic minority background.
Following the changes to the Board announced in December
and January and explained on pages 77 and 78, the Committee
is mindful of the fact that, as at the 2025 AGM, the percentage
of female directors on the Board will fall below 40%, to 37.5%.
The Committee will continue to keep this target firmly in mind in
its consideration of Board composition and succession plans in
2025, and for future appointments to the Board. The changes
did not affect compliance in the accounting period being
reported on.
In accordance with the UK Listing Rules, numerical data on
the gender
1
and ethnic diversity of the Board and executive
management
2
is set out below.
Gender and ethnicity data reported below was collected directly
from Board and executive management members via a secure
questionnaire using the categories listed in the tables below as
at 31 January 2025. The data was processed and retained in
accordance with the Group’s Data Protection Policy.
Data protection laws in certain jurisdictions have prevented the
collection of data on ethnicity for certain Board and executive
management members who are resident in those jurisdictions.
Those individuals have been recorded in the ‘not specified’
category for the disclosure on ethnic background.
Gender (sex) as at 31 January 2025
Number
ofBoard
members
Percentage
of the board
Number
ofsenior
positions on
the Board
(CEO, CFO,
SID and Chair)
Number in
executive
management
Percentage
of executive
management
Men 5 50.0% 2 9 69.2%
Women 5 50.0% 2 4 30.8%
Not
specified/
prefer not
tosay
– – – – –
1. The data reported is on the basis of sex.
2. Per the definition within the UK Listing Rules, executive management is
defined as the Group Executive and the Group Company Secretary.
79Kingfisher 2024/25 Annual Report and Accounts
Ethnic background as at 31 January 2025
Number
ofBoard
members
Percentage
of the board
Number
ofsenior
positions on
the Board
(CEO, CFO,
SID and Chair)
Number in
executive
management
Percentage
of executive
management
White British
or other
White
(including
minority-white
groups)
7 70.0% 3 8 61.5%
Mixed/
Multiple
Ethnic Groups
– – – – –
Asian/Asian
British
2 20.0% 1 2 15.4%
Black/African/
Caribbean/
Black British
– – – – –
Other ethnic
group
– – – – –
Not
specified/
prefer not
tosay
1 10.0% – 3 23.1%
Our approach to collecting data more broadly for employees,
including senior leadership across the Group, is set out in the
people and culture section on page 18.
As well as the UK Listing Rule Board diversity targets, the Board
continued to meet the targets of the FTSE Women Leaders
Review and, since 2016, the Parker Review targets on ethnic
diversity (as required for the relevant year). The Committee
continues to support the recommendations of the Parker Review.
In alignment with the Parker Review, we have set a milestone
target of 12.5% ethnic diversity in the Group Executive and their
direct reports based in the UK (and on UK contracts) by 2027.
As reported to the Parker Review as at 31 December 2024, this
group is 6.4% ethnically diverse, based on self-identification
against UK ONS categories.
Independence, time commitment,
and re-election to the Board
New directors are advised of the time commitment expected
from them on appointment. During the year, the Committee
conducted its annual review of the non-executive directors’
independence and time commitments, taking into account
therecommended guidance from investor bodies and our
larger shareholders, as well as their attendance rate at Board
and relevant Committee meetings. Having due regard to their
performance and ability, contribution to the company’s
long-term sustainable success and the need for progressive
refreshing of the Board, the Committee also considered and
recommended for re-election to the Board those directors
who wish to stand at the 2025 AGM. The Committee believes
thateach non-executive director remains independent and is
not overextended or unable to fulfil their duties to the Board.
Directors have demonstrated a strong commitment to their
roles in their attendance at Board and Committee meetings
setout on pages 71, 77, 81, 83 and 88 of this report.
In line with directors’ appointment terms, the Board considers
existing time commitments before approving new appointments,
and directors give careful and ongoing consideration to their
external time commitments to ensure that they can devote
anappropriate amount of time to their role at Kingfisher. In
relation to Lucinda Riches’ appointment to the Board and her
subsequent appointment as Senior Independent Director, the
Board considered her total external time commitments, and
noting she has confirmed that she will be stepping down from
one of her other listed positions in autumn 2025, was satisfied
that her appointment as Senior Independent Director would be
complementary to her role as Remuneration Committee Chair
and would not compromise her commitment to her role on our
Board and Committees (see page 73 for Lucinda’s biography).
All directors are subject to annual re-election by shareholders,
as required by the company’s Articles of Association.
Kingfisher’s policy allows executive directors to hold one
external non-executive directorship.
Our areas of focus in 2025/26
— Remain focused on succession planning to appropriately
anticipate the evolution of skills and experience on the
Board in the coming years and continue to monitor the
development of the Group’s pipeline for Group Executive
level and senior leadership roles.
— Continue to support Board-level inclusion and diversity
throughout the succession planning process, keeping
in mind the FTSE Women Leaders and Parker
review recommendations.
Nomination Committee report continued
Other Information
80 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Dear Shareholder,
The Responsible Business Committee supports and oversees
the delivery of the Group’s Responsible Business strategy, an
integral part of ‘Powered by Kingfisher’. Further detail on our
Responsible Business strategy is set out on pages 26 to 29
and in the Responsible Business Report available on the
company’s website.
The Committee champions Kingfisher to deliver on our ambition
to lead the industry in Responsible Business practices, ensuring
that our strategy is robust, transparent, accountable, and
integrated into our governance. This includes monitoring
performance against the Responsible Business priorities and
providing frequent support and advice to the Group Executive
and the Board on all Responsible Business matters. During the
year, the Committee continued to prioritise tracking progress
on our customers, colleagues, communities and planet pillars to
drive positive change, colleague and customer communication,
and also discussed how to shape the framework for the future
Responsible Business strategy, whilst remaining cognisant of
the impact of a changing ESG reporting landscape on all our
stakeholders. The Committee was kept updated on Kingfisher’s
approach to ESG regulation and actions being taken by the
business to respond to these topics.
Meeting materials are structured to support the Committee to
oversee the delivery of our Responsible Business priorities and
to help in its role as it supports and guides executive leadership,
to maximise stakeholder engagement and maintain meaningful
focus on the Responsible Business fundamentals. In 2024, this
included a session with an external speaker from Ricardo, a
consultancy firm which has supported Kingfisher in developing
its net zero roadmap, to stimulate debate and share learnings.
Board and Committee members also receive a variety of
reports on a regular basis, including Responsible Business KPI
performance tracking. TheCommittee monitors key areas of
focus within Kingfisher’s net zero roadmap and delivery plan,
investor engagementand ESG ratings, and through the Group
Climate Committee, the actions and decisions being taken by
executive leadership to support the business to drive the
Group’s climate agenda.
Sophie Gasperment
Chair of the Responsible Business Committee
24 March 2025
Membership and attendance
Eligible Attended
Sophie Gasperment
1
3 3
Rakhi Goss-Custard 3 3
Thierry Garnier 3 3
John Mewett 3 3
Lucinda Riches
2
1 1
Kate Seljeflot 3 3
Henri Solère 3 3
1. Chair of the Committee.
2. Lucinda was appointed to the Committee with effect from 1 January 2025.
The Committee has three scheduled meetings each year, one
ofwhich is convened to consider the output of the Committee’s
annual performance review.
Following the appointment of Lucinda Riches from January
2025, the Responsible Business Committee comprises three
independent non-executive directors, our CEO and other
members of the Group Executive. Lucinda’s appointment
will ensure we maintain consistent non-executive director
membership when Rakhi steps down as a Committee member
with effect from the conclusion of the 2025 AGM (further detail
on non-executive director succession is set out on pages 77
and 78).
The Committee’s terms of reference are reviewed annually
and are available on the company’s website. The Chair of
the Committee reports on its activities at each subsequent
Board meeting.
During the year, an internal evaluation of the Committee’s
effectiveness was undertaken as part of the broader evaluation
of Board performance. The evaluation concluded that the
Committee operates effectively, and raised no areas of
immediate concern.
Further detail on the evaluation process can be found on page 76.
Colleagues
The Committee continued to track colleague sentiment on our
Responsible Business agenda through the analysis of data and
insights gathered through the colleague engagement survey,
and the evaluation of actions taken to support strong employee
engagement on this topic across Kingfisher. The Committee
remains close to the outputs of the colleague engagement survey
and heard regular updates on developments across Responsible
Business colleague activations and initiatives to promote the
colleague experience of Responsible Business and best practice
sharing across theGroup. This included progress on the roll
out of ‘Together. Stronger’, the multi-year Group-wide allyship
campaign aimed to support an inclusive and diverse culture, and
a banner update on the launch of the campaign in Screwfix.
During the year, the Committee also reviewed colleague
communications and engagement campaigns, including
feedback from the Inclusion and Diversity colleague forum,
andengagement campaigns on Kingfisher’s Scope 3 emissions
and net zero roadmap, which sought to simplify and support deeper
understanding of the topics for both colleagues and suppliers.
Responsible Business Committee report
81Kingfisher 2024/25 Annual Report and Accounts
Customers
The Committee reviewed the impact of the Customer pillar
ofthe Responsible Business strategy as part of its appraisal
ofthe company’s Scope 3 plan. The review included the actions
required to deliver Scope 3 carbon reductions including our
actions to engage customers on greener homes. This was
supported by a deep dive on supplier engagement and industry
partnerships to support the Sustainable Home Products (SHP)
roadmap to deliver Scope 3 decarbonisation.
Planet
The Committee shaped the Planet pillar of the Responsible
Business strategy, through an appraisal of the development and
implementation of Kingfisher’s net zero roadmap and delivery
plan, including draft Scope 3 targets and KPIs, and the next set
of interim targets for Scope 1 and 2. This included reviewing
feedback from suppliers on their decarbonisation plans and
working with industry partnerships to accelerate the retail
sector’s progress. The Committee suggested areas for further
consideration and analysis, including opportunities for Kingfisher
to amplify the impact of its positive work and further engage its
stakeholders, and subsequently noted the delivery actions taken,
including in communication, engagement, disclosure and reporting.
Through the Group Climate Committee, the Committee also
oversaw the actions and decisions taken to deliver the net zero
roadmap and prepare for future reporting requirements.
The Committee guided Kingfisher’s approach to wood and paper
sourcing practices.
Communities
The Committee monitored the impact and breadth of community
projects and investment across banners, including the banner
foundations and the success and reach of the communities
programme to date. This covered our response todisasters,
such as the flooding in Romania and Poland, and thewildfires in
northern Portugal.
The Committee also received deep dives on projects undertaken
by the Group and the banner foundations with our charity partners
during the year, including opportunities for colleague and
customer engagement in community programming through the
Castorama Poland Foundation and its volunteering programme.
The Committee provided guidance on the approach to
volunteering opportunities for colleagues.
Our areas of focus in 2025/26
In 2025/26, the Committee will continue to support and guide
the business in the delivery of the current Responsible Business
priorities across the four pillars of our strategy, in line with
the Group’s strategy, as well as shape and direct the future
Responsible Business priorities, beyond 2025/26. This will
include, but is not limited to, reviewing delivery plans against
targets, engagement and activation with our key stakeholders
around our Responsible Business agenda, and appraising
progress against Kingfisher’s net zero roadmap.
Responsible Business Committee report continued
Other Information
82 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Dear Shareholder,
The Audit Committee’s primary function is to offer independent
challenge and oversight, on behalf of the Board, in matters
related to accounting, financial reporting, risk management,
andthe Group’s internal control environment. It also supervises
our Internal Audit function and manages Kingfisher’s relationship
with our external auditor, Deloitte LLP (Deloitte). The Committee
maintains an evolving annual forward agenda that adapts to
theshifting risks and priorities of the business.
Throughout the year, as part of an ongoing programme of
scheduled risk and control updates, the Committee received
presentations from banners, Group Functions, and leaders of
relevant projects regarding their control environments and the
mitigating actions employed to manage key risks. The topics
considered by the Committee included:
— The Group’s preparedness for changes to the UK Corporate
Governance Code (the Code) concerning the effectiveness
of internal controls and the mechanisms in place to
monitor them.
— The control environment within our banners and the
measures implemented to protect the profitability of
the business model.
— The control environments for various functions, including
Offer & Sourcing, IT and Human Resources.
— An evaluation of forthcoming ESG reporting changes and,
specifically, management’s proposed approach to the
new Corporate Sustainability Reporting Directive.
Additionally, the Committee devoted substantial attention to
its core responsibilities related to monitoring the integrity of
the financial and narrative statements in the Group’s annual and
half-year reports. This included monitoring significant reporting
matters, judgements and estimates, and disclosures included
within those reports. The work entailed reviewing the
appropriateness of the Group’s operating and reportable
segments, the assumptions underlying store and goodwill
impairment reviews, provisions for uncertain tax positions and
the presentation of adjusting items. Further details regarding
the Committee’s activities in these and other areas, including
the work undertaken to meet the Minimum Standard for
Audit Committees, are provided on the following pages.
Jeff Carr
Chair of the Audit Committee
24 March 2025
Audit Committee report
Membership and attendance
Eligible Attended
Jeff Carr
1
4 4
Catherine Bradley 4 4
Rakhi Goss-Custard 4 4
Bill Lennie 4 4
Lucinda Riches
2
1 –
1. Chair of the Committee.
2. As Lucinda only joined the board in 2025, due to an existing scheduling
commitment, she was unable to attend one Committee meeting during
the year.
The Audit Committee is comprised solely of independent
non-executive directors. Jeff Carr is a qualified chartered
accountant and former CFO with experience in both the retail
sector and UK-listed companies. His financial experience makes
him the right person to fulfil the Committee’s responsibilities
andthe Code requirements.
During the year, an internal evaluation of the Committee’s
effectiveness was undertaken as part of the broader evaluation
of Board performance. The evaluation concluded that the
Committee operates effectively and raised no areas of
immediate concern.
Further detail on the evaluation process can be found on page 76.
Financial statements and reporting
All company financial statements and results announcements are
reviewed by the Committee with the support of the Disclosure
Committee. The Disclosure Committee consists of the CFO,
Group Company Secretary, Group General Counsel, and Group
Investor Relations Director. It is the Committee’s responsibility
to consider and challenge management regarding accounting
principles, policies, and practices applied, as well as any financial
reporting matters and significant judgments made. The Committee’s
work in this regard also extends to the use of alternative
performance measures (‘APMs’) in order to ensure that good
quality disclosures are included for APMs that support users
of the financial statements in gaining an understanding of the
ongoing business performance.
Following our review of the 2024/25 Annual Report
and Accounts and the full-year results announcement, we
recommended to the Board that the disclosures, along with
the processes and controls underlying their production, met
the legal and regulatory requirements for a UK-listed company.
We believe that, taken as a whole, the Annual Report and
Accounts and the announcement of full-year results are fair,
balanced, and understandable. Our review extended to the
publication of these documents in a structured XHTML format
and the electronic tagging of the financial statements, ensuring
that the necessary procedures had been completed by all
parties, including our technical accounting team and a specialist
IT provider. No external assurance was deemed necessary for
the XHTML structured report.
83Kingfisher 2024/25 Annual Report and Accounts
Audit Committee report continued
Significant financial reporting matters
We assess all issues that may affect the integrity of the company’s published financial statements to ensure that each is treated
appropriately. For 2024/25, we monitored the following significant financial reporting matters and took appropriate actions.
The Committee discussed these matters with Deloitte and, where appropriate, they have been addressed as key audit matters
in the independent auditor’s report from page 124.
Matter considered Role of the Committee Conclusion
What are the
appropriate operating
and reportable
segments?
The Committee reviewed management’s reassessment and
subsequent change in determination of operating segments.
This included consideration of the organisational changes
leading to the reassessment, as well as the criteria for
identifying operating segments included within IFRS 8 –
Operating segments.
We also reviewed management’s approach to determining
the appropriate reportable segments, based on the relevant
IFRS 8 quantitative thresholds and aggregation criteria.
The Committee endorsed management’s change in
determination of operating segments, with each retail
banner now determined to be an operating segment
(operating segments were previously determined based
ongeographical area). The Committee also endorsed
management’s approach to determining reportable
segments, with reportable segments continuing to be
aggregated by geographical area. Refer to notes 2 and 5
tothe consolidated financial statements.
Does the carrying value
of stores and goodwill
require any impairment
charges or reversals?
We examined the results of management’s year-end impairment
exercise and assessed the validity of cash flow projections
based on the company’s three-year strategic plans and the
financial assumptions used. These assumptions included
forecast sales growth, margin and operating profit percentages.
Our review included consideration of actual trading during the
year, expectations for the future market environment, and the
impact of Kingfisher’s strategy.
We reviewed the long-term growth rates, based on inflation
expectations, and the discount rates, which take into account
the cost of equity and debt. We also assessed management’s
approach to identifying impaired stores.
Sensitivity analyses were reviewed for the impact of changes
in operating cash flows and discount rates on both store
impairments and the level of goodwill headroom.
The Committee endorsed the recognition of store net
impairment charges of £94 million (recorded as adjusting
items), principally in the UK and France, and an £84 million
impairment of goodwill, relating to Castorama France, and
the associated disclosures. Refer to notes 3, 6, 13, 15 and 17
to the consolidated financial statements.
What should the
treatment of liabilities
and contingent
liabilities be in
relationto uncertain
taxpositions?
We reviewed various tax positions and audits across
theGroup’s jurisdictions. These included transfer pricing
arrangements and the European Commission state aid
investigation, including the latest proceedings and expected
decisions regarding the latter. This review included the
appropriate recognition, measurement and presentation
ofassets and liabilities recorded, and the classification
anddisclosures of contingent liabilities.
The Committee endorsed management’s accounting
judgements relating to uncertain tax positions. In relation to
the state aid case, a current asset of £69 million is recorded
on the balance sheet, reflecting the amount paid to the UK
tax authorities in 2021/22 plus accrued interest. This amount
is expected to be repaid in 2025/26 and is no longer
considered to be a ‘Critical accounting judgment’ as a result.
Refer to notes 3, 10 and 36 to the consolidated
financial statements.
Are adjusting items
appropriately
presented and
disclosed in the
financial statements?
The Committee reviewed the appropriateness of all items
which were presented within adjusting items in the financial
statements. This review included consideration of the
appropriateness of the Group’s policy for adjusting items,
as well as the consistency of the application of the policy.
We also reviewed the appropriateness of disclosures relating
to adjusting items included within the financial statements.
The Committee endorsed management’s judgments
relating to the recognition of a net post-tax charge of
£196 million within adjusting items. Refer to note 6 to
the consolidated financial statements.
What are the principal
judgements relating to
inventory provisioning?
We closely monitored the levels of inventory in each banner
as well as the performance of the Group’s OEB products,
andthe estimated impacts on future selling prices from range
review and clearance activities. This included consideration
ofour trading performance, in particular in France, stock
availability, price indices, the reduction in inventory levels, new
ranges and the impact of inflation on cost and selling prices.
The key consideration was the appropriateness of the
Group’s inventory provisions and policy, which considers
factors including stock turn, range or de-listed status,
shrinkage, damage, and obsolescence when assessing
net realisable value. This included an assessment of any
significant judgemental provisions or exclusions from
thestandard mechanical provision calculations.
The Committee endorsed management’s accounting
estimates relating to inventory valuation (£2.7 billion), and
that the provisions recorded were appropriate considering
the quality and profile of inventories held by the Group at
the reporting date. Refer to notes 3 and 19 to the
consolidated financial statements.
Are appropriate
actuarial assumptions
being used in respect
ofthe valuation ofthe
pension schemes?
The Committee reviewed the principal financial and
demographic assumptions used to value the Group’s defined
benefit pension schemes, inparticular for the significant UK
scheme. This included the assumptions used for discount
rate, pension increases and mortality.
The Committee endorsed management’s accounting
estimates relating to defined benefit pensions and the
recognition in other comprehensive income of £11 million
ofnet remeasurement losses. Refer to notes 3 and 28 to
theconsolidated financial statements.
Other Information
84 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Viability statement and going concern
The Committee also reviewed and agreed the scenarios
underpinning the viability statement and going concern statement.
This assessment included the modelling of a remote downside
scenario which estimated the impact of a demand or supply
shock preventing the Group from realising a large part of its
sales during the peak trading period. As part of this assessment,
the Committee also considered the period covered by the
viability statement and concluded that a three year assessment
period remains appropriate given the alignment with the Group’s
three year planning process under the ‘Powered by Kingfisher’
strategy. Having considered the various downside scenarios and
possible mitigation actions, the Committee is of the view that the
company would have sufficient headroom under its key financial
covenants, and therefore both statements were recommended
to the Board for approval.
The viability and going concern statements are set out on pages 66 to 68.
The Committee also reviewed the relevant disclosures
in relation to climate change, including compliance with the
Task Force onClimate-related Financial Disclosures (TCFD)
and the Companies (Strategic Report) (Climate-related
Financial Disclosure) Regulations 2022 (CFD) requirements, and
considered whether the impact of climate change represented
akey source of estimation uncertainty or a critical accounting
judgement in the financial statements. The Committee endorsed
management’s disclosures and itsassessment that climate
change does not represent a key source of estimation
uncertainty or a critical accounting judgement, given the limited
financial impacts expected in the time horizons used in forecasts
such as for going concern or impairment testing purposes, and
the mitigations and opportunities available to the Group in the
longer term.
External audit
Audit quality
The Committee’s oversight of our relationship with Deloitte
includes making recommendations to the Boardregarding
its appointment, reappointment, and removal, as well as
continuously assessing its independence and negotiating
the audit fee. The Committee recognises the importance of
encouraging challenge by the auditor and satisfying itself that
the quality of the audit is of a high standard. Both the full-year
audit and half-year review process were conducted with a
culture of challenge, openness and collaboration at their core,
which we believe has been essential in ensuring audit quality.
The Committee is grateful for the work of Nicola Mitchell, as the
outgoing audit engagement partner, in leading an independent,
objective and effective audit process over the last five years
and for ensuring a smooth transition to Dave Griffin, incoming
partner, who led the half-year and year-end audit processes.
Throughout each audit and review process, the Committee
reviewed the findings issued by the Financial Reporting
Council (FRC) in relation to audit quality and was pleased to note
Deloitte’s continued strong performance across its Tier 1 audits.
The company’s 2023/24 audit was selected by the FRC for
Audit Quality Inspection, with the assessment focusing primarily
on: impairment of store-based assets, inventory provisioning,
revenue recognition and inventory existence. The Committee
received and reviewed the final report from the Audit Quality
Review team which identified no key findings, and noted one
area of good practice. The Committee reviewed the FRC’s
findings and discussed the outcome and associated actions
of the inspection with the external auditor.
A key part of the Committee’s role in the audit process is
to review the audit plan set by Deloitte and ensure that the
approach is tailored to the company’s business and its control
environment. At its June meeting, the Committee reviewed
Deloitte’s audit plan for 2024/25, including the key risks and
areas of focus that had been identified for the audit, the
planned audit procedures, including substantive procedures
and assessment of the Group’s internal controls and the
project timetable.
In September and January, the Committee reviewed the
progress against the priorities as the audit progressed and noted
the efforts of both the Deloitte team and management to meet
the stated objectives. This included a review of the adequacy
of the resources allocated by Deloitte to meet the plan and the
team structure proposed. In March, the Committee assessed the
outcomes of the audit against the priorities. The Committee was
pleased to see the continued improvements in the effectiveness
of the audit process and, in particular, the prominence of the IT
audit process given the criticality of IT infrastructure to the
Group’s operations and key controls.
Independence
A key part of the Committee’s role in overseeing the external
audit is ensuring that the auditor remains independent, thereby
allowing the audit process to be conducted objectively and with
appropriate levels of challenge. At each meeting, the Committee
assesses Deloitte’s independence and the safeguards in place
with regards to the provision of non-audit services in order to
ensure that there are no engagements that might inhibit the
audit team from forming an impartial view.
In addition to Deloitte’s safeguards, the company operates its
own policy on the provision of non-audit services to ensure
compliance with the FRC’s Revised Ethical Standard 2024. This
policy, which is reviewed annually and is available on our website,
sets out the parameters for engaging the auditor for services
outside of the statutory audit and seeks to strike an appropriate
balance between maintaining independence and not depriving
the company of Deloitte’s expertise where it might be
appropriate to engage it. In line with the Ethical Standard, our
policy caps the level of non-audit fees at 70 per cent of the
average audit fee for the last three years. In 2024/25, non-audit
fees were 9 per cent of the audit fee, with the bulk of these
fees being in relation to the interim review process where it
is standard practice for the external auditor to be engaged.
Fees for non-audit services are also set out in note 8 to the Consolidated
financial statements.
85Kingfisher 2024/25 Annual Report and Accounts
Audit Committee report continued
Effectiveness and reappointment
The Committee also considered the effectiveness of the
external audit process based on the outcome of the annual
evaluation. This process captures feedback on the audit and the
performance of the audit team from both the Committee and
members of senior management from across the business.
Topics surveyed include:
— Quality of service.
— Capability and resourcing of the audit team.
— Communication and interaction.
— Independence, objectivity and professional scepticism.
Overall, the survey concluded that Deloitte is meeting or
exceeding the Committee’s and management’s expectations,
with Deloitte providing a good level of challenge during the
process, with clear communication of findings on key judgement
areas. Following the outcome of this evaluation process and,
taking into account the requirements of the Minimum Standard
for Audit Committees, the Committee concluded that Deloitte
conducted an effective audit, and therefore recommended their
reappointment for the financial year ending 2024/25, which was
approved at the 2024 AGM. The Board also expects to propose
Deloitte’s reappointment at the 2025 AGM.
In addition, taking into account the output of the survey
and separate debrief sessions with Group Finance, Deloitte
presented its proposals to address actions from the survey
in the design of the 2024/25 audit. These proposals were
reviewed and endorsed by the Committee at its June meeting
and included actions in relation to process, store-based
impairment reviews and testing of controls.
In terms of fees paid to Deloitte for audit services in 2024/25,
these are set out in note 8 to the Consolidated financial
statements. Kingfisher continues to comply with the Statutory
Audit Services Order 2014 which sets out the provisions for
listed companies regarding regular tendering and accountability
of statutory audit services. Deloitte was appointed as auditor in
2009/10 and subsequently reappointed in 2019/20 after a
comprehensive and competitive audit tender process. Given
Deloitte’s understanding of the company’s business and their
continued effectiveness as external auditor, the Committee
believes that it is in shareholders’ best interests to continue to
recommend Deloitte as auditor and that a competitive tender
process should be conducted no later than the end of the
2026/27 financial year.
Accountability, risk management and internal control
On behalf of the Board, the Audit Committee oversees
the company’s system of internal control, including its risk
management framework and the work of the Internal
Audit function.
Internal Audit reports directly to the Committee and has
authority to review any part of the organisation and to oversee
the audit and risk committees of the banners. Internal Audit
provides updates on its audit schedule and findings at every
meeting of the Committee so that our leadership always has
objective assurance on the control environment across the Group.
The Group’s approach in this regard complies with the
requirements of the Code and was developed with reference
to the FRC’s Guidance on Risk Management, Internal Control
and Related Financial and Business Reporting. The Committee
provides an independent overview of internal control matters
while Deloitte’s reports to the Committee include key audit
risk and control findings relevant to the audit process.
Internal control
In response to the updates to the UK Corporate Governance
Code regarding internal control, the company is actively
preparing to meet the requirements of Provision 29 ahead of
thedeclaration on the effectiveness of material controls due in
2026/27. This work continues to build on the company’s existing
Internal Controls over Reporting (ICR Programme) and the
outputs of an external assurance review of the ICR Programme
which the Committee reviewed in June. The Committee has also
approved core definitions for material controls and effectiveness,
which now form the foundation of our global control framework
and are being utilized by management to define the relevant
controls for the declaration.
In September, the Committee evaluated the initial list of material
controls designed to mitigate principal risks to a level aligned
with the company’s risk appetite and, in the second half of the
year, management conducted a gap analysis of the control
framework and presented the findings, along with proposed
remedial actions. Over the course of the next year, a ‘dry run’
exercise will be conducted, which will include an assessment of
the effectiveness of the agreed material controls, to ensure that
the Board is well placed to make the first declaration under the
new Code in its 2026/27 Annual Report.
Compliance
In addition to internal controls, the Committee receives
regularupdates on litigation and compliance matters, including
reports on the company’s ‘Speak Up’ whistleblowing hotline.
Operating as a responsible business is a key element of the
‘Powered by Kingfisher’ strategy and the Committee plays a
fundamental role in overseeing the process to ensure thehighest
ethical standards are maintained across Kingfisher’sbusiness.
During the year, the Committee endorsed the compliance
priorities for the Group, with a particular focus being on awareness
of compliance policies and achieving consistency in reporting
across the organisation. To achieve this, in late 2024 a ‘Speak Up’
awareness campaign was launched with the following objectives:
— Remind colleagues about the importance of speaking
upwhen they have an ethical concern.
— Raising awareness of the channels available, and how
andwhen to use the Speak Up channel.
— Ensuring people leaders are equipped to guide colleagues
with ethical concerns.
— Encourage non-anonymous reporting, promoting a culture
of openness and transparency.
— Building an inclusive, ethical culture, in line with our Code
ofConduct.
More information on the company’s Code of Conduct and the role of
theGroup Ethics and Compliance Committee can be found on page 29.
Other Information
86 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Risk management
The risk assessment process in place across the Group directly
impacts the way in which significant business risks are identified,
measured, and managed. The Committee’s consideration of
risk management and internal control is driven primarily by the
company’s assessment of its principal and emerging risks and
uncertainties, discussed on pages 60 to 65. During the year, the
Committee received briefings from the Internal Audit and Risk
Director, as well as from banner CEOs and Group Function
directors, on operational risks and associated controls,
including on risk mitigation and control improvements.
The Board is responsible for establishing a framework of effective
controls for assessing and managing risk. Our internal control
environment is codified in a suite of policies, procedures, operating
standards, and delegated authorities to ensure the right actions
are approved and taken quickly. We aim to manage rather than
eliminate the risk of failure to achieve our business objectives, as
it is not possible to provide absolute assurance against material
misstatement or loss.
Management is responsible for applying judgement when
evaluating and managing the risks the company faces as part
ofits operations.
The company’s approach to risk management is also discussed
onpage60.
There are clear processes for controlling and monitoring
thesystem of internal control and reporting any significant
control failings or weaknesses. These include:
— The annual planning process and regular financial reporting
to compare our results with those set out in our strategic
plan and against previous performance.
— Quarterly updates on financial risks and the Internal Controls
over Reporting Programme are made against the global
controls framework prescribed by the Group and detailed
control design assessments updated by all banners and
Group Functions for each reporting period.
— Reports from the CEO and CFO at each Board meeting.
— Periodic reports from banner CEOs and Group Function
directors on the control environment in their businesses.
— Reports and presentations to the Board on certain specialist
risks, including treasury, insurance, tax, governance, cyber
threats, and pensions.
In addition, banner CEOs and Group Function directors certify
compliance with the Company’s policies and procedures, and
that the relevant internal controls were in operation during the
period. Any weaknesses are highlighted, and the results are
reviewed by the Internal Audit and Risk Director, the CFO,
the Committee, and the Board. Furthermore, full substantive
testing of financial reporting controls is in the process of being
rolled out across the Group to support the updated global
controls framework.
Group Internal Audit
Each year, the Internal Audit function’s reviews are aligned to the
company’s principal risks. The function works with the banners
and Group Functions to develop, improve, and further embed
risk management activities into their operations.
Detailed outputs of internal audits are conducted in several
areas, including:
— Strategic: Marketplace Roll-Out in Castorama France,
Sustainable Home Products, TradePoint Sales Partners.
— Financial risks: Assurance over Internal Control over Financial
Reporting Programme, IT Financial Controls, Screwfix Spares
and Screwfix France Foundational Controls.
— Operational risks: Business Continuity Plans, Distribution
Centre Third-Party Logistics Management of Stock, GFR
Purchase Order Approvals, GNFR Process Governance,
New Range Implementation, Payroll, Digital Product Model,
as well as technology risk areas such as Core Cloud
Controls, Website Security, and IT General Controls.
— Compliance risks: Pricing Control and Omnibus Directive
Compliance, Timber Chain of Custody, Buyer Independence
and Whistleblowing Policy Compliance.
The remit, organisation, and resources of the Internal Audit
function were reviewed as part of the internal effectiveness
evaluation that was conducted internally by the Company
Secretary and captured the views of Committee members,
executive directors, and senior management including banner
CEOs and Group Function directors. The Committee
andmanagement continued to rate the Internal Audit function
highly and, in doing so, agreed a number of actions to continue to
enhance the work of the function and its role within the business,
including co-ordination of risk, controls and internal audit in light
of the amendments to Provision 29 of the Code.
87Kingfisher 2024/25 Annual Report and Accounts
Dear Shareholder,
As Chair of Kingfisher’s Remuneration Committee, I am pleased
to present the Directors’ remuneration report for 2024/25.
I succeeded Claudia Arney as Chair of the Committee on 20 June
2024, having served as a member of the Committee since 2018.
In this statement, I describe the key items considered by the
Committee during the financial year, including:
— Our proposed Directors’ Remuneration Policy (Policy) which
will be put forward to shareholders at the 2025 AGM for
their approval; and
— The incentive outcomes for the year as well as the broader
context of remuneration at the company. These are also
contained within our Annual Report on Remuneration which
describes how our current Directors’ Remuneration Policy
(current Policy) was implemented during 2024/25, and how
the new Policy will be implemented in 2025/26 (subject to
approval). The Annual Report on Remuneration, together
with the Annual Statement, will be put to an advisory vote
at the 2025 AGM.
Performance during the year
We have continued to make progress on our strategic priorities
within the continuingly challenging macroeconomic and
consumer environment.
We have delivered sales and profit at £12,784m and £528m
respectively, which is in line with our initial guidance. We have
also delivered strong free cash flow of £511m, which is ahead
of our initial guidance.
We are committed to leading our industry as a responsible
business as shown in the Responsible Business section on pages
26 to 29. Our Scope 1 and 2 carbon emissions have reduced by
66.0% since 2016/17 exceeding our FY 25/26 target of 37.8%.
Good progress has been made on wood and paper targets with
now 97.9% of wood and paper being responsibly sourced for
our products and catalogues. We also made further progress
on gender representation, with 30.1% women in our senior
leadership team (FY 23/24: 28.6%).
This has been possible due to the hard work and dedication of
our colleagues across the Group and whom I thank.
Our wider workforce
Kingfisher is committed to creating a workplace where everyone
is treated fairly. Store colleagues’ pay rates have been reviewed
as part of the April 2025 pay review. As per prior years, increases
proposed for these colleagues are generally above or in line
with proposals for management colleagues. In light of the UK
Government’s announcement of an increase in the rate of
National Living Wage and National Minimum Wage effective
1 April 2025, B&Q and Screwfix store colleagues’ pay rates will
increase to £12.71 and £12.64 per hour respectively (an increase
of c. 4% from 1 April 2024).
The Committee has also been updated on the progress of
implementation of the new EU Pay Transparency Directive
which impacts the majority of our locations. This directive
aims at increasing pay transparency and will be taken into
consideration by the Committee as part of their review of
wider workforce conditions.
Directors’ remuneration report
In this report
88 Remuneration Committee Chair’sAnnual Statement
92 Remuneration at a glance
93 Directors’ Remuneration Policy
102 Annual Report on Remuneration
118 Statement on the Implementation of the Remuneration
Policy for 2025/26
About this report
The Directors’ remuneration report, on pages 88 to 119, has
been prepared in compliance with the remuneration disclosures
required under the Large and Medium-Sized Companies and
Groups (Accounts and Reports) Regulations 2008 (as amended)
and include the items required to be disclosed under 6.6.6R of
the Financial Conduct Authority’s UK Listing Rules. Where
information disclosed has been subject to audit by the
Group’s auditor, Deloitte LLP, this is highlighted.
During the year, an internal evaluation of the Committee’s
effectiveness was undertaken as part of the broader evaluation
of Board performance. The evaluation concluded that the
Committee operates effectively and raised no areas of
immediate concern. Further detail on the evaluation
process can be found on page 76.
Committee composition
The Committee comprised the following members during
theyear:
Eligible Attended
Rakhi Goss-Custard
1
3 3
Claudia Arney
2
3 3
Catherine Bradley
3 3
Jeff Carr
3
3 2
Sophie Gasperment
3 3
Lucinda Riches
4
1 1
1. Chair of the Committee.
2. Claudia Arney stepped down as Chair and from the Committee on
20 June 2024 and was succeeded as Chair by Rakhi Goss-Custard
from the same date. Lucinda Riches will succeed Rakhi as Remuneration
Committee Chair with effect from the conclusion of the 2025 AGM.
3. Jeff was unable to attend one Committee meeting during the year due
to a personal commitment.
4. Lucinda was appointed to the Committee with effect from 1 January 2025.
In addition to the scheduled meetings reflected in the table
above, three ad hoc Remuneration Committee meetings were
held during the year.
Non-executive directors, who are not members, may also
attend Committee meetings. This includes the Chair. CEO,
CFO, CPO, Group Company Secretary, Group Reward
Director, Head of Executive Reward and the Committee’s
remuneration advisers were regular attendees at Committee
meetings held during the year. No individual was present when
his or her own remuneration or benefits were discussed.
Other Information
88 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
The Committee continues to oversee Kingfisher’s gender pay
report, which we publish on our corporate website. As evidenced
in our People and culture, and Responsible Business sections on
pages 16 to 18 and 26 to 29 respectively, we remain committed
to developing more inclusive leaders and improving gender
representation across our business. Work is also underway to
ensure readiness for future other pay reporting requirements.
Executive director changes
Bernard Bot retired as Chief Financial Officer and stepped down
as a director on 13 January 2025. In order to ensure a smooth
handover Bernard remained employed in a below Board role until
28 February 2025, following which he ceased employment with
Kingfisher. Further details on the remuneration arrangements
for Bernard’s departure are provided on pages 106 and 107.
As announced on 17 June 2024, Bhavesh Mistry was appointed
as Chief Financial Officer and a Board director and commenced
in role on 13 January 2025. In setting Bhavesh’s remuneration,
the Committee considered his wealth of experience as a FTSE
100 CFO, market data in respect of FTSE 51-100 companies and
other FTSE 350 retailers, the previous CFO’s remuneration
package, our current Policy and proposed Policy and the pay
and conditions of the wider workforce. Taking these factors into
account, Bhavesh’s salary was set at £645,000. His pension
contributions and variable remuneration opportunities (annual
bonus and Performance Share Plan (PSP)) are in line with his
predecessor and the current Policy and proposed Policy.
Bhavesh will also receive buyout awards to compensate him
for awards forfeited from his previous employer in connection
with his appointment at Kingfisher. Further details are set out on
pages 107 and 108.
Chair of the Board change
Andrew Cosslett stepped down from his role as Chair of the
Board at the AGM on 20 June 2024. He received a pro-rated
fee up to and including 20 June 2024, including pro-rated
contributions for administrative support. No other remuneration
payment was made by the company to Andrew after ceasing to
be a non-executive director nor any payment for loss of office.
Claudia Arney was appointed to the role of Chair of the Board
from 20 June 2024. She receives a Chair fee of £496,500 (in line
with her predecessor), and contributions of up to £24,830 for
administrative support (which is 50% of that provided to Andrew
on the basis that Claudia already had part-time administrative
support in place at the time of appointment). Further details on
the Chair (and other non-executive director) fees are set out
on page 117.
Remuneration Policy review
During the year we undertook an extensive review of our current
Policy. Kingfisher’s current Remuneration Policy, consisting of a
market aligned reward structure of an annual bonus with deferral
into shares and a PSP granted annually, was approved by our
shareholders at the 2022 AGM with over 93% support, and has
operated as intended since. The current Remuneration Policy
was chosen after a thorough review by the Committee as it
was the most suitable structure to support our ‘Powered by
Kingfisher’ strategy.
There has been no fundamental change to our strategy since the
current Policy was approved by shareholders, we believe it is
operating as intended, and therefore, we are not proposing any
significant changes to the structure of the Policy for approval at
the 2025 AGM. The Committee is proposing to make two minor
changes which improve the flexibility of the Policy and reflects
the new Investment Association’s Principles of Remuneration.
Firstly, to the wording of the pensions section. The new wording
provides flexibility to ensure executive director contributions
continue to be aligned to the UK wider workforce rates if the
UK wider workforce contribution rate were to change either
upwards or downwards, rather than remaining at 14% of salary
pension contribution or 12.5% of salary cash alternative. It is not
expected that the level of pension provision available to the
wider workforce will change in the near term (and thus to the
executive director level), however the new wording ensures
continued alignment with the wider workforce.
The second proposed change relates to the Annual Bonus.
The Investment Association’s 2025 Principles of Remuneration
has stated that a reduction in level of deferral of the bonus may
be suitable if shareholding requirements have been met and
the Committee has the ability to exercise malus and clawback
provisions. Therefore, an amendment is being proposed to
give the Committee the flexibility to scale down bonus deferral
(currently anything earned over 100% of salary is deferred for
three years) if an executive director has suitably met their
shareholding requirement. This flexibility will only be
implemented by the Committee after careful consideration.
This includes ensuring continued significant long-term alignment
of the interests of the executive directors (executives) to that of
shareholders and that malus and clawback provisions can be
implemented if required.
Remuneration Policy implementation
To ensure that the remuneration structure continues to
reinforce our strategic priorities, we are proposing amendments
to the performance measures used in future bonus and PSP
cycles. These changes are already permitted within the remit
of the current Policy and thus will be within the remit of the
Policy that we will submit for approval at the 2025 AGM.
Annual Bonus
For the last three years, 80% of the Annual Bonus for the
executive directors has been measured on financial measures
which are: adjusted pre-tax profit (40%), like-for-like sales
growth (40%) with the remainder on strategic measures.
For 2024/25, the strategic measure was free cash flow (FCF).
For 2025/26, 80% will continue to be measured on financial
measures and 20% of the bonus will be based on individual
measures. These individual measures will directly support
the achievement of our key strategic objectives for the year.
It is also the approach used for colleagues further down the
organisation so this change will drive a consistent approach
across annual bonus participants.
Details on these measures including targets and outcomes
against these will be published retrospectively in the
remuneration report.
89Kingfisher 2024/25 Annual Report and Accounts
Performance Share Plan (PSP) measures
The Committee also reviewed the performance measures used
in the PSP. It concluded that Earnings Per Share (EPS), Relative
Total Shareholder Return (TSR) and a basket of Environmental,
Social and Governance (ESG) measures remain appropriate for
Kingfisher and continue to provide strong alignment to Kingfisher’s
medium to longer-term aims and value creation. The Committee
concluded that FCF was more suitable as along-term measure
and is a key Group financial priority andcommitment to the
market. Return on Capital Employed (ROCE) also tends to follow
the same trajectory as EPS due to relative stability in capital
employed at Kingfisher. Therefore Cumulative FCF will replace
ROCE as a measure. The FCF measure used will becumulative:
measuring the cash flow generated over the three-year
performance period. ROCE remains an important measure and
will continue to be monitored by the company and the Board.
Relative TSR will continue to be measured against a combined
group of the constituents of the FTSE 350 Retailers, FTSE 350
Drug and Grocery Stores as well as STOXX 600 Drug and
Grocery Stores. The Committee continues to consider the
majority of these comparators to be relevant in terms of
sector, geographies of operation and brand recognition.
The four measures will continue to be weighted equally at 25%
each for the 2025 PSP award.
Decisions made by the Committee during the year
Taking into account the performance during the year and
our continuing commitment to ensuring that executives are
focused on outcomes and strategic priorities, the Committee
implemented the approved current Policy as follows:
2024/25 Annual Bonus outturn
The 2024/25 Annual Bonus for the executive directors was
assessed against adjusted pre-tax profit (40% weighting),
like-for-like (LFL) sales growth (40% weighting) and FCF (20%
weighting). In line with the Policy, the Committee reviewed the
outcome of each measure and also undertook a holistic view of
the outturn versus underlying performance and value delivered
to our shareholders.
Between threshold and target performance was achieved for
adjusted pre-tax profit and LFL sales growth while performance
at maximum was achieved for FCF. Collectively this resulted in
a formulaic outturn of 44.13% of total bonus opportunity for
executive directors. The Committee determined this level of
outturn was appropriate given the performance over the year,
the value delivered to shareholders and the treatment of the
wider workforce and therefore no discretion was applied to
the outturn.
Full details on the performance against each of the
2024/25 measures can be found on page 104.
Vesting of the 2022 Performance Share Plan
The 2022 Performance Share Plan (PSP) award is dependent
on performance against targets for EPS, ROCE, Relative TSR
and a basket of ESG measures, all equally weighted at 25%.
Performance was measured across a three-year performance
period, between 1 February 2022 and 31 January 2025. In March,
the Committee reviewed the performance during the period
ahead of the award vesting in June 2025, resulting in a formulaic
outturn of 14.6% of maximum. The Committee determined this
level of outturn was appropriate given the performance over the
period, the value delivered to shareholders and the treatment of
the wider workforce. The Committee also assessed the impact
of the increase in share price from the point of grant and no
discretion was applied to the outturn.
Full details on the performance against each of the measures
can be found on page 105.
Key remuneration decisions for 2025/26
The Committee also made a number of decisions relevant for
2025/26 during the year which are as follows:
Salary increases
A salary increase of 2% will be awarded to Thierry Garnier
effective from 1 April 2025. This increase is in line with the
standard increase proposed for the wider UK workforce based
in head offices. As Bhavesh Mistry only joined in January 2025,
no salary increase will be awarded.
2025/26 Annual Bonus
As detailed earlier, the Committee reviewed our annual bonus
measures. As a result of the review, the 2025/26 Annual Bonus
will be assessed against adjusted pre-tax profit and LFL sales
growth (with a 40% weighting each) and individual measures
(with a 20% weighting).
2025 PSP measures and targets
The Committee also reviewed the performance measures
used in the PSP. The Committee determined that the 2025
PSP measures will be EPS, Cumulative FCF, Relative TSR and a
basket of ESG measures with a 25% weighting each. Full details
of measures and targets are set out on page 114.
Directors’ remuneration report continued
Other Information
90 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Changes to non-executive directors’ and Chair’s fees
The Board reviewed the non-executive directors’ fees and
agreed, effective 1 February 2025, that the base fee, Senior
Independent Director, and committees’ chair and member
fees will be increased by 2%.
Separately, in respect of the Chair fee, a 2% increase effective
1 February 2025 was agreed by the Committee.
These increases reflect the significant time commitment
required for these roles and are in line with the increase
being implemented for the wider UK workforce.
Committee changes
As announced on 12 December 2024, I will be stepping
down from the Board and as Chair of the Committee at the
conclusion of the 2025 AGM. I will be succeeded as Committee
Chair by Lucinda Riches and I would like to take this opportunity
to wish her every success. It has been a privilege to serve as
Committee Chair and I would like to thank the members of
the Committee, both past and present, for their support
and guidance.
Looking ahead
The Committee and I remain committed to ensuring thatwe
have an open and transparent dialogue with shareholders and so
welcome any questions you may have on the implementation of
the current Policy in 2024/25, our revised 2025 Policy and how
we intend to implement that Policy in the coming year, or any
other relevant topics. I look forward to receiving your support
for ourAnnual Report on Remuneration and our revised
Remuneration Policy at the 2025 AGM.
Rakhi Goss-Custard
Chair of the Remuneration Committee
24 March 2025
91Kingfisher 2024/25 Annual Report and Accounts
Remuneration at a glance
The following page provides our simplified Remuneration principles, a summary of the new Remuneration Policy and its proposed
implementation in 2025/26 and a summary of the implementation of the current Policy in 2024/25.
Remuneration principles
Simple, transparent
and relevant
Supports long-term
value creation
Fully supports Kingfisher’s
purpose and values
Rewards for strategy delivery
and performance
Summary of policy and implementation for 2025/26
Summary Measures Alignment to strategy
Base salary For 2025:
CEO: £936,190 (2% increase)
CFO: £645,000 (No increase)
Reflects the individual’s role, experience and
contribution to the company and is set at levels that
support the recruitment and retention of executive
directors of the calibre required by the company.
Annual Bonus Maximum opportunity
CEO: 200% of salary
CFO: 190% of salary
Performance is assessed over one year.
Any bonus earned over 100% of salary will
be deferred into shares for three years
subject to the shareholding requirement
being met.
40% Adjusted pre-tax profit
40% LFL sales growth
20% Individual measures
Incentivises executive directors to achieve or
exceed annual financial and individual objectives set
by the Committee at the start of each financial year.
Long-term shareholder alignment provided through
bonus deferral or shareholding guidelines.
Performance
Share Plan
Maximum opportunity
CEO: 275% of salary
CFO: 260% of salary
Awards vest subject to performance
over three financial years and are subject
to a further two-year holding period.
25% EPS
25% Cumulative FCF
25% Relative TSR
25% on a basket of ESG
measures
EPS, Cumulative FCF and ESG are aligned to the
strategy while Relative TSR ensures that payout
for participants is aligned to value creation
for shareholders.
ESG reflects the importance of our Responsible
Business agenda and recognises our long-term
goals and commitments.
Share
ownership
requirements
CEO: 350% of salary
CFO: 270% of salary
Executives are additionally required to hold
100% of the shareholding requirement for
a period of two years post-employment.
To ensure the alignment of the interests of
executives and shareholders over the long term,
executive directors are required to build a
significant shareholding.
Our FY 24/25 performance highlights
Adjusted
pre-tax profit
LFL
sales growth FCF
Adjusted
EPS ROCE
£528m (1.7)% £511m 20.7p 7.4%
Remuneration in 2024/25
Fixed pay Annual Bonus outcome Performance Share Plan outcome
Total
single figure
£’000 % of max % of salary £’000 % of max £’000 £’000
CEO 1,075.8 44.1% 88.3% 804.9 14.6% 404.2 2,284.9
CFO (Bhavesh Mistry)
1
41.2 44.1% 83.8% 29.4 N/A N/A 1,908.9
Former executive director
CFO (Bernard Bot)
2
717.2 44.1% 83.8% 510.5 14.6% 241.6 1,469.3
1. Bhavesh’s total single figure amount includes remuneration received from the date he joined the Board on 13 January 2025 and includes buyout awards made
to replace incentives forfeited on cessation from his previous employer. These are set out in detail on page 108 of this report.
2. Bernard Bot served as CFO until 13 January 2025. The figures in the table above reflect his time served as an executive director only.
Basket of ESG measures
Reduction in
Scope 1 and 2
carbon
emissions
Wood and
paper
responsibly
sourced
Percentage
ofwomen
insenior
leadership
66.0% 97.9% 30.1%
Directors’ remuneration report continued
Other Information
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Directors’ Remuneration Policy (to be submitted
forshareholder approval at the 2025 AGM)
Shareholders approved the current Policy at the AGM held on
22 June 2022, with a vote of 93.11% in favour. The full version of
the current shareholder-approved Policy can be found in the
2021/22 Annual Report.
As required under the Companies Act 2006, a new Policy will
be presented to shareholders for approval at the 23June 2025
AGM which is detailed in full in the following section. If approved,
the Policy will take effect from the date of the AGM. The new
Remuneration Policy will also be available on the company’s
website following the AGM.
In developing the 2025 Remuneration Policy, the Committee
considered the ‘Powered by Kingfisher’ strategy, market
practice and best practice corporate governance guidelines.
It also took into account guidelines issued by the Investment
Association, Institutional Shareholder Services and Glass Lewis.
Whilst colleagues have not been formally consulted on the
proposals, we will take the opportunity to talk to our colleagues
on the new Remuneration Policy and executive director
arrangements at a future colleague forum.
Policy table
Base salary
Element and purpose
Base salary reflects the individual’s role, experience and contribution
to the company and is set at levels that support the recruitment and
retention of executive directors of the calibre required by the company.
Operation
In setting base salaries, the Committee also has regard to salaries for
similar roles in comparator companies including those in FTSE retailers
and companies of a similar size and complexity.
Maximum opportunity
Salary increases will typically be in line with the wider workforce.
The Committee has the flexibility to award higher salary increases in
exceptional circumstances.
Increases awarded each year will normally be set out in the statement
of implementation of the Policy.
Assessment of performance
Individual performance is an important factor considered by the
Committee when reviewing base salary each year.
Change
None.
Benefits
Element and purpose
Benefits are provided to assist executive directors in the performance
of their roles and are designed to be competitive and cost-effective.
Operation
The company may provide pension benefits (set out in the following
section), a company car or cash alternative, medical insurance, and life
assurance cover.
Other benefits may be provided from time to time if considered
reasonable and appropriate by the Committee, such as relocation
allowances, and would be explained in the subsequent Annual Report
on Remuneration.
The company pays the cost of providing benefits on a monthly basis or
as required for one-off events such as financial planning advice.
Store discounts may be offered to all executive directors on the same
basis as offered to other company employees.
Maximum opportunity
Maximum levels of benefit provision are:
— Car allowance of £25,000 per annum.
— Private medical insurance on a family basis.
— Life assurance cover of four times base salary.
— Store discount of up to 20%.
The cost of providing insurance benefits varies according to premium
rates so there is no formal maximum monetary value.
Any relocation allowance will be limited to 50% of base salary (inclusive
of any tax payable on expenses reimbursed).
Assessment of performance
None.
Change
None.
There has been no fundamental change to our strategy since the
current Policy was approved by shareholders and therefore, we
are not proposing any significant changes to the structure of the
new Policy for approval at the 2025 AGM. There are two minor
changes to the Policy which improve the flexibility allowed
within the Policy. Both changes are aligned to the Investment
Association’s 2025 Principles of Remuneration and Glass Lewis’
Benchmark Policy Guidelines.
— Pensions: The previous wording limits the level of executive
director employer pension contribution to 14% of salary
(or a 12.5% of salary cash equivalent). The revised wording
details that executive director contributions are to be
aligned to the UK wider workforce rates. As such, if the UK
wider workforce contribution rate were to change either
upwards or downwards, the rate for executive directors
will also change accordingly.
— Annual Bonus: Under the current Policy, bonus earned above
100% of salary is delivered in shares which are deferred for
three years. Additional wording has been included to provide
the Committee with flexibility to scale down the level of
deferral, including the option to take down to nil, if an executive
director has suitably met their shareholding requirement.
93Kingfisher 2024/25 Annual Report and Accounts
Pension
Element and purpose
To provide retirement benefits, support retirement planning, and provide
a competitive fixed pay package.
Operation
Pension provision for executive directors is by way of contributions to a
defined contribution scheme or cash allowance.
Maximum opportunity
Employer contribution into a defined contribution scheme or a cash
alternative. Maximum in line with arrangements for other UK colleagues.
This is currently a maximum employer contribution of 14% of base salary
or cash alternative of 12.5% of base salary.
Assessment of performance
None.
Change
Removal of explicit limit of 14% of base salary or cash alternative of 12.5%
of base salary to provide the flexibility for executive director maximum
contributions to align with any movements in the UK colleague maximum.
Annual Bonus
Element and purpose
To incentivise executive directors to achieve or exceed annual strategic
objectives set by the Committee at the start of each financial year.
Operation
Annual Bonuses are earned over the year, based on performance against
targets over the financial year.
The Annual Bonus will be delivered as follows:
— bonus earned up to 100% of salary in cash; and
— bonus earned above 100% of salary in shares which are deferred
for three years and subject to continued employment in line with
plan rules. The level of deferral may be scaled down, including the
option to take down to nil if the shareholding requirement has been
suitably satisfied.
Dividend equivalents are payable in respect of any deferred shares
thatvest.
The Committee has the discretion to adjust the bonus outcome in light
of overall underlying performance.
Any adjustment made using discretion will be explained in the following
Annual Report on Remuneration.
Malus and clawback apply under circumstances as set out in the notes
to the Policy table.
Change of control provisions apply as set out in the notes to the
Policytable.
Maximum opportunity
The maximum Annual Bonus award is 200% of salary for the CEO
and 190% of salary for the CFO (and any other executive directors).
The level of payment at threshold is set on an annual basis but will not
exceed 25% of maximum.
Assessment of performance
The Annual Bonus measures may be based on a mixture of financial,
operational, strategic and individual performance measures dependent on
the company’s goals and strategic priorities over the year under review.
At least 70% of the bonus will be dependent on financial measures.
Change
New Policy permits flexibility to scale down bonus deferral where an
executive director has met their shareholding requirement.
Directors’ remuneration report continued
Other Information
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Performance Share Plan (PSP)
Element and purpose
To incentivise executive directors to deliver on Kingfisher’s long-term
strategic aims and create sustainable shareholder value, aligning the
interests of participants with those of shareholders.
To retain executive directors and provide market competitive
total reward.
Operation
Awards are granted annually, and vest after three years subject to
performance achieved against performance targets set over not less
than a three-year period. All vested shares will normally be subject to
a further two-year holding period.
Dividend equivalents are payable in respect of the shares that vest.
The Committee has discretion to adjust the vesting outcome if the
formulaic outcome is not felt to produce an appropriate result in light of
overall underlying company performance. Any adjustment made using this
discretion will be explained in the following Annual Report on Remuneration.
Malus and clawback apply under circumstances as set out in the notes to
the Policy table.
Change of control provisions apply as set out in the notes to the
Policytable.
Maximum opportunity
The maximum annual award that can be granted each year under the PSP
is 275% of salary for the CEO and 260% of salary for the CFO (and any
other executive directors) respectively.
For threshold performance on any measure, at most 25% of the maximum
award available for that measure may vest.
Assessment of performance
Awards granted will vest based on performance over not less than three
years against performance measures determined by the Committee and
aligned to the company’s strategic priorities. At least 50% of the
measures will be based on financial measures.
The performance measures selected for the 2025 grant are:
— 25% Earnings per Share (EPS);
— 25% Cumulative Free Cash Flow (FCF);
— 25% Relative Total Shareholder Return (TSR); and
— 25% on a basket of Environmental, Social and Governance (ESG)
measures.
Any substantial or significant changes to the measures will be subject to
shareholder consultation.
The performance outcomes will be assessed at the end of the three-year
period to ensure they are appropriate within the context of the wider
business performance.
The performance measures have been chosen to balance growth and
returns and ensure sustainable delivery of performance.
Change
None.
Chair and non-executive director fees
Element and purpose
To attract and retain a Chair and non-executive directors of the
highest calibre.
Operation
The fees paid to the Chair are determined by the Committee, while
the fees of the non-executive directors are determined by the Board
with affected persons absenting themselves from the discussions,
as appropriate.
The Committee reviews the Chair’s fees annually.
The Chair’s fees are determined with reference to time commitment and
relevant benchmark market data. Contributions are made towards the
cost of running the Chair’s office.
The Board determines non-executive directors’ fees under a policy that
seeks to recognise the time commitment, responsibility and technical
skills required to make a valuable contribution to an effective Board.
A base fee is paid to all non-executive directors and additional fees are
also paid to the Senior Independent Director, the chairs and members of
each of the Audit, Remuneration and Responsible Business Committees.
Chair and membership fees may be introduced for current and
new committees.
Appropriate benefits, including the reimbursement of appropriate
expenses, may be provided from time to time, as required.
The Board may annually review fees paid to non-executive directors
against those in similar companies and take into account the time
commitment expected of them.
Fees are paid monthly, wholly in cash.
The Chair and the non-executive directors do not participate in any of
the company’s performance-related pay programmes and do not receive
pension benefits.
Maximum opportunity
Aggregate annual fees paid to the Chair and non-executive directors are
limited by the company’s Articles of Association, which may be varied by
special resolution of the shareholders.
The current limit contained within the Articles of Association is
£1.75 million as approved at the 2014 AGM.
Contributions towards the cost of running the Chair’s office will not
exceed £60,000 per annum and are included within the aggregate fees
set out above.
Assessment of performance
None.
Change
None.
95Kingfisher 2024/25 Annual Report and Accounts
All-employee share plans
Element and purpose
Executive directors may participate in Kingfisher’s all-employee share
plans on similar terms to other employees.
Operation
In particular, UK-based executive directors may participate in the
Sharesave Plan (Sharesave), a tax-approved all-employee scheme
under which they make monthly savings over a period of three or five
years, which may be used to buy Kingfisher shares at a discounted
price when the scheme matures. They may also choose to withdraw
their savings at the end of the savings period or at any time during the
savings contract.
UK-based executive directors may also participate in the Share Incentive
Plan (SIP). Designed to promote employee share ownership, the SIP
enables employees to make monthly investments in Kingfisher shares.
Maximum opportunity
The maximum limit for the Sharesave is currently £500 per month. The
maximum amount an individual may invest in partnership shares under
the SIP is currently £150 per month. The SIP also allows the award of
free and matching shares up to the limits set by the UK Government.
The company may increase the amounts that can be saved or invested
under the Sharesave and SIP plans in line with any increases authorised
by the UK Government for approved plans.
Assessment of performance
None.
Change
None.
Shareholding requirements
To ensure the alignment of the interests of executives
and shareholders over the long term, executive directors are
required to build a significant shareholding. The shareholding
requirement is 350% of salary for the CEO and 270% for the
CFO, and any other executive director, remaining unchanged
from previous policy.
All shares owned beneficially and nil-cost awards that have
vested but that the executive has yet to exercise are considered
to count towards the shareholding on a notional post-tax basis.
Until the shareholding requirement is met, executive directors
are required to retain 100% of vested post-tax PSP, Deferred
Bonus and historical Alignment Share awards, and retain 50% of
historical vested post-tax Delivering Value Incentive (DVI) shares.
The full shareholding requirement will apply for two years
post-employment. The Committee has established mechanisms
to enforce the post-employment shareholding guidelines once
an executive director has left the company.
Notes to the Policy table
Selection of performance measures
The measures for the Annual Bonus and the Performance Share
Plan will be chosen each year for their alignment to the company’s
goals and strategic priorities and may vary according to the
priorities over the relevant performance periods.
The measures for the 2025/26 Annual Bonus are adjusted
pre-tax profit, like-for-like (LFL) sales growth and individual
measures. Adjusted pre-tax profit and LFL sales growth ensure
that executives are focused on delivering both growth and
profitability for our shareholders. Individual measures directly
support the achievement of key in year objectives.
For the 2025 PSP, the measures chosen are EPS, Cumulative
FCF, Relative TSR and ESG. EPS was chosen to ensure
sustainable, long-term delivery of profit for our shareholders.
The inclusion of FCF signifies it as a key metric in Kingfisher’s
financial priorities and commitment to the market. Relative TSR
is measured against the constituents of the FTSE 350 Retailers,
FTSE 350 Drug and Grocery Stores as well as the STOXX 600
Drug and Grocery Stores. The Group ensures that we deliver
strong shareholder returns within the context of an appropriate
group of peers.
ESG measures provide a direct link to our Responsible Business
agenda and recognise our long-term goals and commitments.
For the 2025 PSP, the ESG bucket of measures includes
(1) a measure addressing climate change, (2) a measure on
sustainable home products and (3) an inclusion-based measure
(gender diversity). These measures reflect the importance of
Kingfisher’s long-term goals in respect of the planet, supporting
our customers to create more sustainable homes and our
commitment to improve the representation of our women
in senior leadership roles.
The targets are set each year to ensure they are appropriately
stretching taking into account short and long internal forecasts
and ambitions as well as external forecasts and views. The specific
measures, targets and weightings may vary from year to year to
align with the company’s strategy.
Malus and clawback
Malus and clawback apply in respect of the Annual Bonus and
Deferred Bonus Shares and PSP awards granted under the
Kingfisher Performance Share Plan (KPSP) as well as legacy
Alignment Shares and DVI awards granted under the Kingfisher
Alignment Share and Transformation Incentive Plan (KASTIP).
These provisions enable the company to reduce (including, if
appropriate, to nil) the payout and vesting levels or to recover
the relevant value following the cash bonus payout or vesting of
shares. These provisions will apply to the cash bonus for a period
of three years following payment, to the Deferred Bonus Awards
during the three-year deferral period and for a period of two
years following vesting of the PSP and legacy Alignment Share
and DVI grants. These provisions could take effect in the event
of financial misstatement, miscalculation due to an error, serious
reputational damage, or material misconduct in individual cases.
The malus and clawback periods are purposefully designed
to align with respective deferral, vesting and holding periods.
These are considered appropriate timeframes to review
whether any trigger events have occurred under the malus
and clawback provisions.
Directors’ remuneration report continued
Other Information
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Change of control
In the event of a change of control, share awards will normally
vest subject to performance conditions. PSP awards, legacy
Alignment Shares and DVI awards will normally be reduced on a
time pro-rated basis in line with the treatment for good leavers,
which is set out in the Policy on payment for loss of office section
of this Directors’ Remuneration Policy. Deferred Bonus share
awards will normally vest on change of control. The Committee
retains discretion to replace awards with an equivalent share
award in the acquiring company.
The Committee may alternatively consider that such a reduction
is inappropriate, e.g. if it is agreed with an acquirer to roll over
outstanding awards. Other awards may be reduced at the
Committee’s discretion.
Discretions
The Committee retains certain discretions in relation to the
Annual Bonus Plan, which are set out in full in the plan rules,
and which include but are not limited to:
— The determination, and timing, of any bonus payment.
— The impact of a change of control or restructuring.
— Overriding formulaic outcomes in line with the provisions
of the UK Corporate Governance Code.
— Adjustments for accounting or equivalent changes for the
Annual Bonus.
— Any adjustments required as a result of a corporate event
(such as a transaction, corporate restructuring event,
special dividend, share buyback or rights issue).
Discretions set out as part of this Policy provide the Committee
with discretion in certain matters regarding the administration
and operation of Deferred Bonus and KPSP awards (as set out
in the corresponding plan rules approved by shareholders),
including, but not limited to, the following:
— The assessment of good leaver status.
— Overriding formulaic outcomes in line with the provisions
of the UK Corporate Governance Code.
— Adjustments for accounting or equivalent changes for
the KPSP.
— Minor administrative matters to improve the efficiency of
the operation of the plans or to comply with local tax law
or regulation.
— Any adjustments to performance conditions or awards
required as a result of a corporate event (such as a
transaction, corporate restructuring event, special dividend,
share buyback or rights issue).
In relation to the Annual Bonus Plan and KPSP awards, and in line
with the plan rules, the Committee retains the ability to amend
the performance conditions and/or measures in respect of any
award or payment if one or more event(s) occur that would lead
the Committee to consider that it would be appropriate to do so,
provided that such an amendment would not be materially less
difficult to satisfy than the original performance condition would
have been but for the event in question.
Should the Committee use any of the discretions set out above,
these would, where relevant, be disclosed in the following Annual
Report on Remuneration. The views of major shareholders may
also be sought. Discretion in relation to the company’s All-
Employee Share Plans (Sharesave and SIP) would be exercised
within the parameters of the HMRC-approved plan status and
the FCA’s UK Listing Rules.
Legacy awards
In-flight awards made before the adoption of this Policy will
continue in line with the approved Policy under which they were
granted. Further details of these awards can be found within the
Remuneration Policy approved at the 9 July 2019 and 22 June
2022 AGMs and included within relevant Annual Report
and Accounts.
Differences in Remuneration Policy for all employees
The remuneration structure for members of the Group
Executive follows a similar approach as for the executive
directors but with a lower maximum opportunity as appropriate
under the Annual Bonus and KPSP. The performance measures
attached to the Annual Bonus are a combination of Group
financial and strategic measures, banner-specific financial and
strategic measures and/or individual measures, depending on
the Group Executive member’s role and responsibilities. Like the
executive directors, bonus earned over 100% of salary is paid
into deferred shares with the Committee having the flexibility to
scale down deferral if any applicable shareholding requirement
has been met. KPSP awards for the Group Executive have the
same performance conditions as the executive directors.
For the next two levels of management below the Group
Executive, the remuneration structure consists of base salary,
benefits, pension, Annual Bonus and KPSP awards. Performance
measures attached to the Annual Bonus are tailored to reflect
the position of the individual and the part of the business in which
they operate, and as such are a combination of Group financial
and strategic measures, banner-specific financial and strategic
measures and/or individual measures. Vesting of the KPSP
awards for these colleagues will be primarily based on the same
measures as the executive directors and Group Executive,
however there is also an element based on time in employment
only for these colleagues.
All other employees are entitled to base salary and benefits and
may also receive bonus, pension, profit share and share awards,
which vary according to local jurisdiction and market practice.
The maximum provision and incentive opportunity available are
determined by the seniority and responsibility of the role.
97Kingfisher 2024/25 Annual Report and Accounts
Statement of consideration of employment conditions
elsewhere in the company
The CPO is invited to present to the Committee the proposals
for salary increases for the employee population generally and
on any other remuneration changes. The CPO consults with the
Committee on the performance conditions for the executive
directors’ bonuses and the extent to which these should be
cascaded to other employees. The Committee has oversight
of all long-term incentive awards across the Group.
The Committee is provided with data on the remuneration
structure for all individuals in Kingfisher’s leadership team,
which includes retail banner CEOs and Group Function directors.
The Committee approves the policy on share award levels for
all employees and uses this information to ensure that there
is consistency of approach across Kingfisher.
As part of a Kingfisher Colleague Forum, colleagues are
advised on a periodic basis on the remuneration arrangements
of executive directors and how these align with the
arrangements offered elsewhere in the organisation.
Statement of consideration of shareholder views
When determining the Remuneration Policy and its
implementation, the Committee engaged with the company’s
largest shareholders and also reviewed best practice guidelines
issued by institutional investor bodies. The Committee took on
board the feedback received when finalising the proposals.
The Committee continues to always be open to feedback from
shareholders on our Remuneration Policy and remuneration
arrangements, and commits to ensuring consultation with our
largest shareholders in advance of any significant changes to the
Remuneration Policy or structure. The Committee continues to
monitor trends and developments in corporate governance and
market practice to ensure the structure of executive
remuneration remains appropriate.
Section 40 disclosures
When considering the Policy and its implementation, the
Committee took into account Provision 40 of the current UK
Corporate Governance Code and considers the framework
meets the factors under the provisions as follows:
— Clarity: The Committee has provided transparent
disclosures regarding the Remuneration Policy and
structure. Changes have been explained in the context
of alignment to the strategy and market practice. The
Remuneration Committee Chair has engaged with our
shareholders on the Remuneration Policy. The Company
has explained and continues to explain the remuneration
structure with the relevant broader population through a
variety of methods including group and one-on-one
meetings and guides.
— Simplicity: The Committee has retained the simplified
arrangements adopted in 2022. Specifically there remains
only one core share award plan available to executive
directors (and other employees), the KPSP, which is
market-aligned in structure and granted annually.
— Risk: The Committee believes that the incentive structures
under the Remuneration Policy do not encourage
inappropriate risk taking. The targets set for the Annual
Bonus and KPSP are stretching and set in line with strategic
priorities and sustainable value creation. All incentive
arrangements have malus and clawback provisions including
in the event of serious reputational damage and for material
misconduct. The Committee can also override formulaic
outcomes if it concludes that incentive outcomes are
not representative of underlying performance.
— Predictability: The Annual Bonus and KPSP have maximum
levels of opportunity with vesting/payment outcomes
dependent on achievement of performance measures.
The range of vesting/payment outcomes is set out in the
scenario charts on page 101 which also demonstrate the
impact of a 50% share price increase from date of grant
to vesting.
— Proportionality: Performance conditions attached to the
Annual Bonus and PSP are directly and clearly linked to
the achievement of Kingfisher’s strategic priorities in both
the short and the longer term. The level of stretch in the
performance conditions have been and continue to be set
to compensate participants accordingly. Bonus deferral,
KPSP holding periods and shareholding requirements
(including post-exit) ensure significant alignment to
long-term value creation.
— Alignment to culture: As discussed above, there is a
strong alignment of the incentive arrangements under the
Remuneration Policy with Kingfisher’s strategic priorities.
Directors’ remuneration report continued
Other Information
98 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Approach for recruitment remuneration
Area Policy and operation
Overall When hiring a new executive director, or making internal promotions to the Board, the Committee will apply the Remuneration Policy.
The rationale for the package offered will be explained in the following Annual Report on Remuneration.
For internal promotions, any commitments made prior to appointment may continue to be honoured as the executive is transitioned to
the new remuneration arrangements. Where an individual is promoted after the annual KPSP award has been granted, an award may be
made to bring the executive on to the in-flight cycle at an opportunity level reflecting their new role, subject to the limits set out in the
Policy. Awards may be pro-rated to reflect the remaining portion of the vesting period. Any award will take into consideration awards
granted prior to promotion.
The Policy below is consistent with the principles of the previous Recruitment Policy.
Base
salary
Base salary would be set at an appropriate level to recruit the best candidate based on their skills, experience and current remuneration.
Benefits Benefits provision would be in line with the normal Policy.
Where appropriate, the executive may also receive relocation benefits or other benefits reflective of normal market practice in the
territory in which the executive director is employed.
Pension Pension provision would be in line with the normal Policy.
Incentive
awards
Incentive awards would be made under the Annual Bonus and KPSP in line with the normal Policy, which determines the maximum
incentive awards that can be made.
Where an individual joins after the annual KPSP has been granted, an award may be made to bring the executive on to the in-flight cycle
subject to the limits set out in the Policy. Awards may be pro-rated to reflect the remaining portion of the vesting period.
Buyout
awards
In addition to normal incentive awards, buyout awards may be made to reflect value forfeited through an individual leaving their
previous employer.
If a buyout award is required, the Committee would aim to reflect the nature, timing and value of awards forgone in any replacement
awards. Awards may be made in cash, as KPSP awards, shares with vesting based on time only or by any other method deemed
appropriate by the Committee. Where possible, share awards will be replaced with share awards.
Where performance conditions applied to the forfeited awards, performance conditions will be applied to the replacement award or
the award size will be discounted accordingly.
In establishing the appropriate value of any buyout, the Committee would also take into account the value of the other elements of
the new remuneration package.
The Committee would aim to minimise the cost to the company; however, buyout awards are not subject to a formal maximum.
Any awards would be broadly no more valuable than those being replaced.
99Kingfisher 2024/25 Annual Report and Accounts
Policy for payment for loss of office
Area Policy
Notice period 12 months’ notice by either the director or the company.
Non-compete During employment and for 12 months after cessation of active employment.
Executive directors’
contractual
termination payment
Resignation
No payments on departure will be made on termination, even if by mutual agreement the notice period is cut short.
Departure not in the case of resignation
For the period of notice served, the executive director may continue to receive their monthly base salary, benefits and
pension. During this time, at the discretion of the company, they may continue their duties or be assigned garden leave.
For the period of notice not served, the executive director may receive a payment in lieu of notice.
No other payments should be due on departure.
Settlement agreement
The Committee may agree payments it considers reasonable in settlement of legal claims.
This may include an entitlement to compensation in respect of a director’s statutory rights under employment
protection legislation in the UK or in other jurisdictions.
The Committee may also include in such payments reasonable reimbursement of professional fees in connection with
such agreements.
Treatment of incentives
for bad leavers
Any outstanding awards under any incentive plans will lapse in the event of the Committee determining the departing
individual to be a bad leaver as defined by the plan rules.
Leaver provisions
for Annual Bonus
for good leavers
Bonus payments may be receivable at the normal date, pro-rated for time, and taking into account performance
achieved. Bonus deferral would normally continue to apply.
Deferred Bonus awards vest on the normal date in full.
Where the participant ceases to be employed as a result of death, the Deferred Bonus award will vest in full shortly
after the company is notified.
The Committee retains the ultimate discretion to make bonus payments and determine the basis upon which
they are made (including if bonus deferral still applies) and their vehicle and value, taking into account the individual
circumstances of the departure. The Committee may, in its discretion, accelerate vesting of the Deferred Bonus
award up to the point of departure.
Performance Share Plan
for good leavers
Awards will vest on the normal date, pro-rated for time, and will take into account performance achieved.
The Committee retains discretion to further reduce the awards granted to reflect any personal performance issues
or accelerate vesting.
Where the participant ceases to be employed as a result of death, the award will vest shortly after the company is
notified, pro-rated for time, and taking into account the Committee’s assessment of performance achieved to that date.
The Committee may decide, acting fairly and reasonably, that any adjustment set out above to reduce the vesting of
the award would be inappropriate.
Shareholding requirements Upon leaving the company, the shareholding requirement will continue to apply for two years.
The shareholding requirement will be 100% of the shareholding requirement for two years after departure.
Shareholding requirements will no longer apply in the case of death. At its discretion, the Committee may apply the
same treatment in cases of ill health.
Chair and non-executive
directors’ contractual
termination payment
Non-executive directors are appointed under letters of engagement.
Appointments have historically been for an initial period of three years and invitations to act for subsequent three-year
terms are subject to a review of performance and take into account the need to progressively refresh the Board.
The appointment may be terminated by either party giving the other not less than three months’ prior written notice,
unless terminated earlier in accordance with the company’s Articles of Association.
The company has no obligation to pay compensation when the appointment terminates.
Leavers will be treated for all-employee share plans in line with the plan rules of the relevant share plan. Good leaver is defined under
the plan rules, and relates to individuals who leave as a result of:
— ill health, injury or disability;
— death;
— redundancy;
— transfer of employer or employing business out of Group;
— retirement; and
— any other reason that the Committee decides.
A bad leaver is any leaver not defined as a good leaver.
Directors’ remuneration report continued
Other Information
100 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Bhavesh Mistry
Base salary Pension Benefits Annual Bonus Performance Share Plan (PSP)
Thierry Garnier
Value of
package (£’000)
Maximum
Target
Below
threshold
Maximum
Target
Below
threshold
2%
17% 34% 46%
1%
4%
1%
11%
4%
£1,103
28% 28% 39%
85%
£3,657
2%
1%
1%
4%
£2,206
18% 33% 46%
11%
4%
£755
29% 28% 38%
85%
£3,327
£5,550
0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 6,0005,500
Illustration of the application of the Remuneration Policy
The tables and charts below provide estimates of the potential total future remuneration for each executive director based on the
remuneration opportunity expected to be granted in 2025/26. Potential outcomes for each executive director, based on three
different performance scenarios, are shown.
Below threshold On-target Maximum
Only the fixed pay elements (base salary,
benefits and pension) of the package
are received.
Minimum performance targets for the Annual
Bonus and PSP are not achieved, therefore
no payments are made, and awards will lapse.
Fixed pay elements plus target Annual Bonus
are received and target PSP vest.
Annual Bonus on-target performance is
achieved, 50% of the bonus paying out (100%
of salary for CEO, 95% of salary for CFO).
PSP vesting at 50% of maximum (137.5% of
salary for CEO, 130% of salary for CFO).
Fixed pay elements plus maximum Annual
Bonus are received and full vesting under
thePSP.
Annual Bonus maximum performance achieved,
resulting in a bonus of 200% and 190% of
salary for the CEO and CFO respectively.
Full vesting under the PSP (275% of salary
for CEO, 260% of salary for CFO).
Notes
Base salary: reflects the salary effective from 1 April 2025.
Benefits: estimate based upon benefits received during 2024/25 as recorded in the single total figure of remuneration table.
Pension: shown as a percentage of salary in line with Policy.
Fixed remuneration: comprises base salary, benefits and pension.
Short-term variable compensation comprises the Annual Bonus including the deferred element. Long-term variable compensation comprises the Performance
Share Plan (PSP).
The Committee has also calculated the implied maximum remuneration scenario with the overlay of 50% share price increase on any vested PSP awards.
This would equate to a total value of £6,837k for Thierry Garnier’s package and £4,496k for Bhavesh Mistry’s package.
101Kingfisher 2024/25 Annual Report and Accounts
Annual Report on Remuneration
This section of the report outlines how the Committee implemented the current Directors’ Remuneration Policy (the Policy) in
the financial year. This report, together with the Annual Statement from the Chair of the Remuneration Committee, will be put to
shareholders for approval at the 2025 AGM. Shareholder approval in respect of the Annual Report on Remuneration is on an advisory
basis only.
The Remuneration Committee
The Committee has delegated authority from the Board over the company’s remuneration framework and Policy. The role of the
Committee is set out in the terms of reference, which is reviewed annually and is available on our website.
Key activities of the Remuneration Committee during the year
The significant matters considered by the Committee during the year are set out below:
Areas of Committee focus Items discussed
Directors’ Remuneration Policy Determined the Directors’ Remuneration Policy for approval by shareholders at the 2025 AGM.
Salary review and
remuneration decisions
Reviewed and approved the salary and fee proposals in respect of the executive directors, Group Executive,
Chair of the Board and Company Secretary.
Reviewed and approved remuneration arrangements of the Group Executive and new CFO, and retirement
arrangements of the former CFO.
Annual Bonus Assessed performance against the 2023/24 strategic measures and approved the 2023/24 Annual Bonus
outturn and final level of payment for the members of the Group Executive and executive directors.
Approved target ranges for the 2024/25 Annual Bonus.
Assessed performance against the 2024/25 Annual Bonus measures and reviewed the year-end forecast.
Agreed the framework for the 2025/26 Annual Bonus.
Alignment Shares Determined the vesting outcome of the 2021 Alignment Share awards.
Delivering Value Incentive Determined the performance of the second performance period of the 2019 Delivering Value Incentive (DVI)
award alongside a quality of earnings test to determine overall vesting.
Performance Share Plan Approved the target ranges for the 2024 PSP and the subsequent grant of awards.
Assessed performance to date of the 2022, 2023 and 2024 PSP awards which will vest in 2025, 2026 and
2027 respectively.
Approved the measures for the 2025 PSP.
Governance and other areas
of focus
Kept under review the company’s approach to wider workforce remuneration.
Monitored developments in corporate governance and market practice in respect of executive remuneration.
Reviewed the output of the annual evaluation of the Committee.
Reviewed and recommended the 2023/24 Directors’ remuneration report to the Board for approval.
Received updates on and considered Kingfisher’s gender pay gap reporting.
Directors’ remuneration report continued
Other Information
102 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Advisers to the Committee
During the financial year ended 31 January 2025, PricewaterhouseCoopers LLP (PwC) provided services to the Committee.
The advice received from PwC by the Committee was considered, and it was determined that PwC provides objective and
independent advice to the Committee. The Committee is satisfied that the PwC engagement partner and team, who provide
remuneration advice to the Committee, do not have connections with the Group and individual directors that may impair their
objectivity and independence.
PwC was appointed by the Committee as its principal adviser on 1 February 2013, following a robust tender process. PwC is a member of,
and adheres to, the Code of Conduct for Remuneration Consultants (which can be found at www.remunerationconsultantsgroup.com).
During the year, PwC provided the Committee with executive remuneration advice. PwC also provided Kingfisher with reward advice
for below-Board staff, tax advice, accounting advice, and legal advice during the year. For services provided to the Remuneration
Committee, the fees paid to PwC were £201,050. These fees were incurred through a retainer, and on a time and expenses basis,
and reflect that the year included a review of the Remuneration Policy.
Voting at the 2024 Annual General Meeting (AGM)
The following table shows the results of the advisory vote on the Annual Report on Remuneration at the 2024 AGM and the binding
vote on the Remuneration Policy at the 2022 AGM.
Resolution
Votes for
(and % of votes cast)
Votes against
(and % of votes cast)
Proportion
of shares voted
Shares on which votes were
withheld
Annual Report on Remuneration (2024 AGM)
1,392,800,765
(89.91%)
156,289,797
(10.09%) 83.50% 97,236,214
Directors’ Remuneration Policy (2022 AGM)
1,620,253,983
(93.11%)
119,882,346
(6.89%) 86.57% 195,473
Single total figure of remuneration for the executive directors (audited information)
The table below sets out the remuneration of each of the executive directors for the financial year ended 31 January 2025 and the
comparative figures for the financial year ended 31 January 2024. The Committee did not exercise any discretion in determining the
incentive outcomes for the year being reported on. In addition, no malus or clawback provisions were applied in the year.
Name
Base
salary
£’000
Taxable
benefits
£’000
Annual
Bonus
£’000
Alignment
Shares
£’000
3
Delivering
Value
Incentive
£’000
4
Performance
Share Plan
£’000
5
Buyout
awards
£’000
6
Pension
£’000
Total
Fixed pay
£’000
Total
Variable
pay
£’000
Total
pay
£’000
Thierry Garnier 2024/25 911.9 49.9 804.9 — — 404.2 — 114.0 1,075.8 1,209.1 2,284.9
2023/24 875.5 63.3 364.9 511.8 3,982.3
—
— 109.4 1,048.2 4,859.0 5,907.2
Bhavesh Mistry
1
2024/25 35.1 1.7 29.4 — — — 1,838.3 4.4 41.2 1,867.7 1,908.9
2023/24 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Former executive director
Bernard Bot
2
2024/25 608.8 32.3 510.5 — — 241.6 — 76.1 717.2 752.1 1,469.3
2023/24 618.3 33.8 244.8 361.5 2,176.6 — — 77.3 729.4 2,782.9 3,512.3
Total 2024/25 1,555.8 83.9 1,344.8 — — 645.8 1,838.3 194.5 1,834.2 3,828.9 5,663.1
2023/24 1,493.8 97.1 609.7 873.3 6,158.9 — — 186.7 1,777.6 7,641.9 9,419.5
1. Bhavesh Mistry served as CFO from 13 January 2025.
2. Bernard Bot served as CFO until 13 January 2025. The figures in the table above reflect his time served as an executive director only.
3. The value of the 2021 Alignment Share award included in 2023/24 for Thierry Garnier and Bernard Bot has been updated using the share price at the date of
vesting (22 April 2024) of 248.2p and includes values of dividend equivalents accrued from the date of grant to the date of vesting. No value was attributable
to share price growth. No discretion has been exercised as a result of the share price change.
4. The value of the Delivering Value Incentive awards included in 2023/24 for Thierry Garnier and Bernard Bot has been updated using the share price at the date
of vesting (30 July 2024) of 275.1p and includes values of dividend equivalents accrued from the date of grant to the date of vesting. The difference between
the share price at the date of grant of the 2019 DVI shares (of 215.4p) and the share price on vest is 59.7p which means £864.2k and £472.3k is attributable to
share price growth respectively. No discretion has been exercised as a result of the share price change. The DVI was structured as a consolidated award that
combined three years worth of incentive into one long term incentive plan.
5. 14.6% of the 2022 Performance Share Plan award for Thierry Garnier and Bernard Bot will vest on 24 June 2025. These awards in the table above have been
valued based on the average share price during the three-month period to 31 January 2025 of 258.4p. Values include dividends accrued since the date of
grant. The difference between the share price at the date of grant of the 2022 KPSP shares (of 243.3p) and the three-month share price average (of 258.3p)
is 15.1p which means £23.7k and £14.1k is attributable to share price growth. No discretion has been exercised as a result of the share price change.
6. Bhavesh Mistry received a number of buyout awards to compensate for those forfeited at his previous employer, full details of which are set out on page 108.
The elements of the buyout not subject to further Kingfisher performance conditions are included in the total shown in the table above. As some of the buyout
awards will be granted after the finalisation of this Directors’ remuneration report, the total figure will be restated in next year’s report to reflect the final
amounts awarded.
103Kingfisher 2024/25 Annual Report and Accounts
Notes to the single total figure of remuneration table
Base salary (audited information)
A 4% salary increase was awarded to the executive directors for the 2024/25 financial year which was in line with the increase
awarded to the wider UK workforce based in head offices.
Name
As at 1 April 2024
£’000
As at 1 April 2023
£’000 % increase
Thierry Garnier 917.8 882.5 4%
Bhavesh Mistry 645.0
1
N/A N/A
Former executive director
Bernard Bot 648.2 623.3 4%
1. Bhavesh Mistry’s base salary is shown at the date of appointment (13 January 2025).
Taxable benefits (audited information)
The benefits provided to executive directors for 2024/25 and 2023/24 included car benefit (or cash allowance), private medical
insurance, life assurance, tax support.
Name
Car benefit
1
£’000
Medical
£’000
Tax and legal
support
2
£’000
Life
assurance
£’000
Total
2024/25
£’000
Total
2023/24
£’000
Thierry Garnier 25.0 9.9 11.0 4.0 49.9 63.3
Bhavesh Mistry 1.4 0.1 0.0 0.2 1.7 N/A
Former executive director
Bernard Bot 23.6 6.0 0.0 2.7 32.3 33.8
1. All directors opt for a cash allowance.
2. This benefit relates to tax assistance provided to the CEO during the year. These items are considered reasonable and appropriate by the Committee.
Annual Bonus (audited information)
The purpose of the Annual Bonus is to focus executives on the achievement of measures that are critical to the Kingfisher strategy.
The 2024/25 Annual Bonus for the executive directors was based on the following measures:
— 40% Adjusted pre-tax profit
— 40% Like-for-like (LFL) sales growth
— 20% Free cash flow (FCF)
The following table sets out the targets that were set in respect of each of these measures, the corresponding achievement against
those targets during the year ending 31 January 2025, and the resulting payout.
Targets
Measure
Threshold
(10% of max)
Target
(50% of max)
Stretch
(100% of max) Achievement Outturn
Adjusted pre-tax profit (40%) £475m £545m £615m £526.7m 39.63%
LFL sales growth (40%) (2.7)% 0.8% 4.3% (1.8)% 20.70%
FCF (20%) £348m £407m £462m £513.6m 100%
Total Outturn 44.13%
At the Remuneration Committee meeting in March 2025, the Committee considered performance against all measures and targets
set at the beginning of the year and concluded that all remain relevant over the performance period. Note for adjusted pre-tax profit,
LFL sales growth and FCF for bonus purposes, these are calculated on a constant currency which is why these values slightly differ
from the rest of the Annual Report.
This means that the total outturn under the 2024/25 Annual Bonus for executive directors is 44.13% of maximum. The final payout
equates to 88.3% of earned salary for Thierry Garnier and 83.8% of earned salary for Bernard Bot and Bhavesh Mistry, which are
£804.9k, £510,5k and £29.4k respectively (applying time pro-rating for Bernard Bot and Bhavesh Mistry as appropriate for their period
of service as an executive director within the year). As described in more detail on page 106, Bernard Bot was also eligible for an
Annual Bonus in respect of the time he will serve as an employee between 13 January 2025 to 31 January 2025, which was earned
to the value of £29.5k. In line with the current Policy and proposed Policy, as the total bonus is less than 100% of salary, it was wholly
delivered in cash.
Directors’ remuneration report continued
Other Information
104 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
In determining whether the level of bonus outturn is appropriate, the Committee has considered a wide range of factors including
financial performance, the value delivered to shareholders, and the treatment of wider workforce as well as other stakeholders.
The Committee did not exercise any discretion in determining the incentive outcomes for the year being reported on, concluding
that a bonus of 44.13% of maximum for 2024/25 is appropriate. The level of performance against relevant measures will also apply
to our bonused colleagues throughout the Group as appropriate.
Performance Share Plan (audited information)
The Kingfisher Performance Share Plan was approved by shareholders at the 2022 AGM, with the first awards made directly
following shareholder approval on 24 June 2022 (maximum of 275% of salary for Thierry Garnier and 260% of salary for Bernard Bot).
The performance period for the first awards (i.e. the 2022 PSP grant) ended on 31 January 2025.
The 2022 PSP award is dependent on 2024/25 EPS, 2024/25 ROCE, Relative TSR and ESG performance. The targets, performance
and resulting formulaic outturn is detailed in the following tables:
Target
2024/25 EPS
(25% weighting)
2024/25 ROCE
(25% weighting)
TSR Percentile vs.
relative TSR peer group
(25% weighting)
Threshold (25% vesting) 36.5p 12.85% 50th
Stretch (100% vesting) 47.5p 16.30% 75th
Outturn 18.9p* 7.38% 40th
Formulaic outturn
(% of maximum) 0.0% 0.0% 0.0%
* The EPS used to assess the 2022 PSP differs from the rest of the annual report due to removal of impact of any share buyback programmes which was
unknown and thus not factored in when the targets were set.
ESG (25% weighting, equally split between the measures)
Target
Climate Change
(reduction in Scope 1 and 2 emissions)
Forest Positive
(% of wood and paper responsibly
sourced as a % of SKUs purchased)
Gender Diversity
(% of women in senior leadership)
Threshold (25% vesting) 31.0% 95.0% 30%
Target (50% vesting) 34.0% 98.0% 33%
Stretch (100% vesting) 37.8% 99.5% 35%
Outturn 66.0% 97.9% 30.1%
Formulaic outturn
(% of maximum) 100% 49.2% 25.8%
For the EPS, ROCE and Relative TSR measures, there is straight line vesting between Threshold and Stretch. For the ESG measures,
there is straight-line vesting between Threshold and Target and Target and Stretch.
TSR was measured against the combined group of the constituents of the FTSE 350 Retailers, FTSE 350 Drug and Grocery Stores as
well as the STOXX 600 Drug and Grocery Stores as at 1 February 2022.
For Thierry Garnier the total formulaic outturn (% of maximum) was therefore 14.6%. The 2022 PSP will vest on 24 June 2025,
following which Thierry Garnier will receive 156,417 shares. The Committee believes this outturn is appropriate and is reflective of
performance over the performance period. The PSP value in the single figure table therefore reflects this number of shares, using
Kingfisher’s share price of 258.4p which is the average share price during the three-month period to 31 January 2025. Details of
Bernard Bot’s 2022 PSP vesting are set out in the Payments for loss of office section on page 107.
The number and value of shares vested for Thierry Garnier is therefore as follows:
Name Number of shares vested
1
Number of dividend
equivalents
2
Value of shares vested
£’000
Thierry Garnier 140,005 16,412 404.2
1. The number of shares shown represents the proportion of the 2022 PSP which is expected to vest on 24 June 2025.
2. Based on dividends accrued to date of publication of the report.
3. Calculated using the three-month average share price to 31 January 2025 of 258.4p. The difference between the share price at the date of grant of the 2022
KPSP shares (of 243.3p) and the three-month share price average is 15.1p which means £23.7k is attributable to share price growth. No discretion has been
exercised as a result of the share price change.
The vested awards are subject to a two-year holding period.
105Kingfisher 2024/25 Annual Report and Accounts
Pensions (audited information)
Executive directors based in the UK are eligible to join the UK defined contribution pension plan (the DC Scheme). No executive
director has a prospective right to a defined benefit pension.
The company operates a policy for all employees to limit the combined employer and member pension contributions during a tax
year to the annual allowance, with the excess employer contribution being directed into a taxable monthly cash allowance. In addition,
employees may opt out of the scheme completely. The executive directors have all opted to receive a cash allowance of 12.5% of
salary in lieu of pension employer contribution. This is aligned to the offering to the wider UK workforce as detailed in Remuneration
Policy on page 94.
A summary of the arrangements for the executive directors is set out below.
Name
National employer contribution rate into
defined contribution pension scheme
for which the individual is eligible
Member of the
UK DC Scheme
Cash allowance
inlieuof employer
contributions
intoDCScheme
Cash allowance rate
as % of salary
Thierry Garnier 14% No Yes, in full 12.5%
Bhavesh Mistry 14% No Yes, in full 12.5%
Former executive director
Bernard Bot 14% No Yes, in full 12.5%
Pension benefits paid during the year
Name
Employer contributions
into DC Scheme
£’000
Cash alternative
£’000
Total 2024/25
£’000
Total
pension benefit as
a % of base salary
Thierry Garnier n/a 114.0 114.0 12.5%
Bhavesh Mistry n/a 4.4 4.4 12.5%
Former executive director
Bernard Bot n/a 76.1 76.1 12.5%
Payments to past directors (audited information)
There were no payments made to past directors.
Payments for loss of office (audited information)
Bernard Bot
Bernard Bot retired as CFO and as a director of the company on 13 January 2025. Bernard remained with the company in a below
Board role to support an orderly transition until the end of February 2025.
Salary and benefits
Bernard continued to receive his base salary, pension and benefits on the same terms as his CFO package up to 28 February 2025,
when his employment ceased.
Payment in lieu of notice
Following the cessation of his employment, the company agreed to make a lump sum payment to Bernard of £187,777 in lieu of the
residue of his notice period of c. 3.5 months’ salary, subject to statutory deductions.
Annual Bonuses
As detailed elsewhere in the Directors’ remuneration report, Bernard’s 2024/25 Annual Bonus was subject to the performance
conditions and rules of that scheme. The Committee agreed that Bernard will be eligible for a 2025/26 Annual Bonus in respect of the
time he would serve as an employee between 1 February and 28 February 2025, measured against a mixture of financial and individual
performance measures. Following performance assessment, as set out on page 104, Bernard’s 2024/25 Annual Bonus outcome was
44.13% of maximum, totalling £510.5k for his time served as a director, and a further £29.5k in respect of the time he served as an
employee after he retired as a director (i.e. between 14 January and 31 January 2025). The full value was paid in cash.
Directors’ remuneration report continued
Other Information
106 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Share Awards
The Remuneration Committee determined that Bernard will be treated as a ‘good leaver’ under both the Kingfisher Alignment Share
and Transformation Incentive Plan (the “KASTIP”) and the Kingfisher Performance Share Plan (the “KPSP”). Accordingly, vested awards
under the KASTIP will continue to be subject to the holding periods under the plan and any unvested awards under the KPSP will vest
on the normal vesting dates and remain subject to holding periods. Unvested KPSP awards will remain subject to the achievement of
performance conditions and pro-rating to reflect time served over the vesting period. As at the point of cessation of employment,
Bernard’s outstanding KPSP awards included grants made in 2022, 2023 and 2024. He will not be eligible for a 2025 KPSP award.
Bernard’s 2022 KPSP award will vest on 24 June 2025, with the performance period having ended on 31 January 2025. As detailed
in the notes to the single figure table, the outturn for this award was 14.6% of maximum, which after pro-rating for time, will result in
93,477 shares vesting to Bernard. Based on Kingfisher’s share price of 258.4p which is the average share price during the three-
month period to 31 January 2025, the forecast value of the award is £241.6k. The number and forecast value of shares vesting is
therefore as follows:
Name Number of shares vested
1
Number of dividend
equivalents
2
Value of shares vested
£’000
3
Bernard Bot 83,669 9,808 241.6
1. The number of shares shown represents the proportion of the 2022 PSP which is expected to vest on 24 June 2025. This has also been pro-rated for
departure date.
2. Based on dividends accrued to date of publication of the report.
3. Calculated using the three-month average share price to 31 January 2025 of 258.4p. The difference between the share price at the date of grant of the 2022
KPSP shares (of 243.3p) and the three-month share price average is 15.1p which means £14.1k is attributable to share price growth. No discretion has been
exercised as a result of the share price change.
The vested awards are subject to a two-year holding period.
Shareholding Requirement
In accordance with the Policy, Bernard is required to maintain a shareholding of 270% of salary for two years post-employment.
Malus and clawback provisions will continue to apply in respect of Annual Bonuses, KASTIP awards and KPSP awards, as set out in
the Policy.
Remuneration arrangements for new executive director
Bhavesh Mistry
Bhavesh Mistry was appointed as Chief Financial Officer and Board director, and commenced in role on 13 January 2025. In setting
Bhavesh’s remuneration, the Committee considered his wealth of experience as a FTSE 100 CFO, market data in respect of FTSE
51-100 companies and other FTSE 350 retailers, the previous CFO’s remuneration package, our Remuneration Policy and the pay
and conditions of the wider workforce. Taking these factors into account, Bhavesh’s salary was set at £645,000.
Pension and variable remuneration opportunities have been set in line with his predecessor and the Remuneration Policy, as set out in
the Statement on the implementation of the Remuneration Policy for 2025/26 on page 118. Bhavesh was eligible to participate in the
2024/25 Annual Bonus, with a maximum opportunity of 190% of salary, pro-rated for time in role for the 2024/25 financial year.
107Kingfisher 2024/25 Annual Report and Accounts
In line with the Policy, the Committee also approved buyout awards to compensate Bhavesh for awards forfeited from his previous
employer in connection with his appointment. Buyout awards have been approved to reflect the value forfeited, aiming to reflect the
nature, timing and value of awards, such that the replacement value is being provided on a like-for-like basis as far as possible. We set
out a summary of the buyout awards below. Details of the actual awards granted during 2025/26 will be disclosed fully in next year’s
Directors’ remuneration report. The buyout awards column of the 2024/25 single total figure table includes the face values/estimated
values of all buyout awards in the below table, except for the 2023 LTIP and 2024 LTIP grants which will be included in the single total
figure for the year in which their respective performance periods end.
Award forfeited
at previous
employer
Actual or
expected date
granted/paid
Type of buyout
award granted by
Kingfisher
Face value/estimated
value of award (£)
Details
Annual Bonus –
2023/24 cash
July 2024 Cash £420,583 To replace the cash element of the 2023/24 annual bonus
award forfeited.
Annual Bonus –
2023/24 shares
April 2025 Nil-cost options £210,292 To replace the shares element of the 2023/24 annual bonus
award forfeited.
Holding period of three years commencing on 28 June 2024
applies (the date Bhavesh would have been granted the
shares at his previous employer).
Annual Bonus –
2024/25
Bhavesh forfeited participation in this scheme. He will receive a pro-rated value calculated from 1 April 2024 to his last day at
his previous employer (31 December 2024).
The value of this award will be finalised using the disclosed outcomes from previous employer’s 2024/25 annual report which
is expected to be published in June 2025.
The bonus will be paid 2/3rds in cash and 1/3rd in Kingfisher plc shares with a three-year deferral period on the shares.
The estimated value of this award, assuming 50% of maximum performance outcome, is £284,063. Full details of the final
award will be provided in the 2025/26 Directors’ remuneration report.
2021 previous
employer Buyout
April 2025 Nil-cost options £35,042 – estimate
1
To replace the 2021 buyout award that Bhavesh received
on joining previous employer, and subsequently forfeited
on cessation. The award was subject to continued
employment only.
Vesting on 26 May 2025, no performance conditions
attached. Two year holding period applies.
2021 LTIP January 2025 Cash £387,856 To replace the 2021 LTIP forfeited. This value reflects a 40%
performance outturn under this incentive, as disclosed in
previous employer’s 2023/24 annual report.
The award was paid in cash as it would have vested on
2 August 2024. Bhavesh is required to repay this amount
if he leaves Kingfisher before 2 August 2026.
2022 LTIP October 2025 Nil-cost options £500,489 – estimate
1,
To replace the 2022 LTIP forfeited.
The value of this award will be based on the outcome of the
previous employer’s 2022 LTIP, as disclosed in their 2024/25
annual report, which is expected to be published in June 2025.
The value will be based on the share price at the expected
vesting date of 19 July 2025.
Kingfisher shares of equal value will then be granted in
October 2025, in line with the scheduled mid-year grant date,
vesting immediately with a holding period until 19 July 2027
(in line with that at the previous employer). An estimate is
included in this table assuming 50% of maximum payout (note
that the actual payout could range from 0-100% of maximum).
2023 LTIP April 2025 Nil-cost options £1,391,157 – estimate
1
To replace the 2023 LTIP forfeited. An award will be granted
under the KPSP with an equivalent maximum value, and will
align with the existing targets, vesting date and holding period
of the 2023 KPSP.
2024 LTIP April 2025 Nil-cost options £1,261,750 Bhavesh forfeited participation in the 2024 LTIP at his
previous employer, which would have been granted in
June 2024 with a maximum value of 250% of his then salary.
An award will be granted under the KPSP with an equivalent
maximum value, and will align with the existing targets,
vesting date and holding period of the 2024 KPSP.
1. Estimated value based on the number of shares forfeited at the previous employer and the previous employer’s three-day average share price to
31 January 2025.
Directors’ remuneration report continued
Other Information
108 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Outside appointments for executive directors
Subject to the rules governing conflicts of interest, Kingfisher is supportive of its executive directors holding one external non-
executive position. The exercise of such roles can provide valuable insight for the executive directors, which can be of benefit to
Kingfisher. Subject to the Committee’s agreement, the individual may retain any fees applicable for these roles.
Thierry Garnier was appointed a non-executive director of Tesco plc on 30 April 2021 and he is currently a member of its Nomination
and Governance Committee and Sustainability Committee. Thierry receives £121,500 per annum for fulfilling this role. He retains this fee.
Performance graph
The graph below shows Kingfisher’s total shareholder return for the 10 years to 31 January 2025, which assumes that £100 was
invested in Kingfisher on 1 February 2015. The company chose the FTSE 100 Index as an appropriate comparator for this graph,
as Kingfisher has been a constituent of that index for the majority of the period.
FTSE 100 Kingfisher
Value (£)
1 Feb 2015 31 Jan 2016 31 Jan 2017 31 Jan 2018 31 Jan 2019 31 Jan 2023
31 Jan 2025
31 Jan 202431 Jan 202231 Jan 202131 Jan 2020
50
100
150
200
109Kingfisher 2024/25 Annual Report and Accounts
CEO’s remuneration over the last 10 years
The table below sets out the total remuneration of the holder of the office of CEO for the period from 1 February 2015 to 31 January 2025.
Year CEO
Bonus % of
maximum
awarded
1
Value of
bonus
awarded
£’000
Alignment
Share grant
as a % of
salary
2
Alignment
Share % of
maximum
vesting
2
Value of
shares vested
£’000
LTIP/DVI/PSP
grant level as
a % of
salary
3
LTIP/DVI/PSP
% of
maximum
vesting
Value of
vested shares
£’000
CEO’s single
figure
£’000
2015/16 Véronique Laury 69.1 967.4 – – – n/a n/a n/a 1,983.0
2016/17 Véronique Laury 90.0 537.0 20
4
100 151.1 200 24.5 100.1 1,715.1
2017/18 Véronique Laury 87.0 534.2 20
4
100 156.9 200 0.0 0.0 1,582.6
2018/19 Véronique Laury 82.0 522.0 50
5
62.5 323.8 n/a n/a n/a 1,761.3
2019/20
Véronique Laury/
Thierry Garnier
6
0 0 20
5
/n/a
7
25.0/n/a 136.2/n/a n/a n/a n/a 1,178.7
2020/21 Thierry Garnier 79.8 510.7 n/a
7
n/a n/a n/a n/a n/a 1,656.2
2021/22 Thierry Garnier 97.5 634.4 80
8
100 816.1 n/a n/a n/a 2,408.9
2022/23 Thierry Garnier 15.9 265.2 80
9
100 706.2 n/a n/a n/a 1,964.4
2023/24 Thierry Garnier 20.8 364.9 80
10
100 511.8
11
840
12
39.8 3,982.3
13
5,907.2
2024/25 Thierry Garnier 44.1 804.9 n/a n/a n/a 275 14.6 402.2 2,284.9
1. The maximum bonus opportunity was 200% of base salary up to the end of the 2015/16 financial year. The maximum bonus opportunity from 2016/17 to
2021/22 was 80% of salary. The maximum bonus opportunity from 2022/23 onwards is 200% of salary.
2. Element of reward introduced under the Remuneration Policy approved by shareholders at the 2016 AGM.
3. The LTIP grant shows the award level at the point of grant, three years prior to the date the vesting percentage was determined. The DVI grant shows the
award level at the point of grant, five years prior to the date the vesting percentage was determined. The PSP grant shows the award level at point of grant,
three years prior to the date the vesting percentage was determined.
4. This represents 25% of the total Alignment Share award (equivalent to 80% of salary) granted in 2016 and 2017 respectively. This portion vested upon grant.
The remaining 75% of this award (equivalent to 60% of salary) may vest three years after the date of grant, subject to performance against the underpin
measures set out in the corresponding remuneration report.
5. This represents 25% of the total Alignment Share award (equivalent to 80% of salary) granted in 2018 or 2019 (that vested upon grant) and 75% of the total
Alignment Share award granted in 2016 (that partially vested in June 2019) and in 2017 (which lapsed in full) for Véronique Laury and which were subject to
performance against the underpin measures set out in the corresponding remuneration report.
6. Véronique Laury stepped down as CEO on 24 September 2019, at which point Thierry Garnier took over the position. Véronique Laury’s remuneration in
the table is from the start of the financial year up until 24 September 2019, and Thierry Garnier’s is from 25 September 2019 to the end of the financial year.
The single total figure in the table above shows the combined total remuneration for both Véronique Laury and Thierry Garnier.
7. 100% of the Alignment Share award granted to Thierry Garnier (equivalent to 80% of salary) in 2019 and 2020 is subject to performance against the underpin
measures set out in the corresponding remuneration report.
8. The figure for 2021/22 represents 100% of the 2019 Alignment Share Award granted to Thierry Garnier vesting based on performance against the underpins
as detailed in this Remuneration report. 100% of the Alignment Share award granted to Thierry Garnier (equivalent to 80% of salary) in 2021 is subject to
performance against the underpin measures set out in the corresponding remuneration report.
9. The figure for 2022/23 represents 100% of the 2020 Alignment Share Award granted to Thierry Garnier vesting based on performance against the underpins
as detailed in this remuneration report.
10. The figure for 2023/24 represents 100% of the 2021 Alignment Share Award granted to Thierry Garnier, vesting based on performance against the underpins
as detailed in this remuneration report.
11. The value of the 2021 Alignment Share award for Thierry Garnier has been updated using the share price at date of vesting (22 April 2024) of 248.2p and
includes values of dividend equivalents accrued from date of grant to vesting.
12. The figure for 2023/24 represents 100% of the main DVI Award and recruitment award (760% and 80% respectively) granted to Thierry Garnier vesting based
on performance against the measures as detailed in this remuneration report.
13. This represents the combined final vesting values of main DVI award and recruitment award (£3,603k and £379k respectively). The values have been updated
using the share price at date of vesting (30 July 2024) of 275.1p and includes values of dividend equivalents accrued from date of grant to vesting. The DVI
award was structured as a consolidated award that combined three years worth of incentive into one award.
Directors’ remuneration report continued
Other Information
110 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Change in the remuneration of the directors
The table below shows how the percentage change in each director’s (including the non-executive directors’) salary, fees, taxable
benefits and bonus between 2020/21 and 2024/25 compared with the average percentage change of each of those components for
all full-time equivalent employees based in Kingfisher plc (as required by regulations). In line with prior years, the percentage change
for each director has also been compared to the UK employee workforce (the UK entities, including B&Q, Screwfix and Screwfix
Spares). The UK employee workforce is deemed to be a suitable comparator group as the executive directors are based in the UK
(albeit with global roles and responsibilities) and pay changes across Kingfisher vary widely depending on local market conditions.
Base salary/fees
1
Taxable benefits Bonus
2024/25 2023/24 2022/23 2021/22 2020/21 2024/25 2023/24 2022/23 2021/22 2020/21 2024/25 2023/24 2022/23 2021/22 2020/21
Executive directors
Thierry
Garnier
2
4.2% 4.7% 2.8% 8.9% (6.7%) (21.2%) 21.6%
20.1%/
1.2%
3
(85.8%)/
(10.9%)
3
112%/
15.2%
3
120.6% 37.6% (58.2%) 24.2% n/a
Bhavesh
Mistry
4
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Former executive director
Bernard Bot
2, 5
4.2% 4.7% 2.8% 8.9% (6.7%) 1.0% 0.3% (4.5%) (1.0%) 1.0% 120.6% 37.6% (60.3%) 24.2% n/a
Non-executive directors
Claudia
Arney
6
297.2% 3.1% 0.0% 12.8% 17.7% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Catherine
Bradley
7
2.9% 2.5% 23.2%
8
47.3% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Jeff Carr 2.9% 2.8% 11.6%
8
12.8% (10%) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Sophie
Gasperment
9
7.5% 9.8% 0.0% 47.5% (10%) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Rakhi
Goss-
Custard
10
9.3% 2.8% 45.2%
8
13.3% (10%) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Bill Lennie
11
2.9% 3.5% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Lucinda
Riches
12
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Ian McLeod
13
n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Former non-executive director
Andrew
Cosslett
14
2.7% 4.0% 3.0% 10.0% 9.1% 7.0% (0.6%) 6.6% 1.1% 8.6% n/a n/a n/a n/a n/a
All Kingfisher
plc
employees 3.7% 8.2% 7.4% (2.6%) (13.8%) (0.5%) 4.6% 27.4% (31.8%)
15
(33.0%) (12.0%) 58.6% (60.8%) 70.1% 97.7%
All UK
employees
16
6.0% 5.7% 11.0% 7.1% (0.6%) 3.2% 4.1% 12.5% (6.3%) (19.1%) 0.0% 98.1% (55.6%) 3.4% 128.8%
1. Percentages reflect cuts in salary and fees made between April 2020 and July 2020 for executive directors and between April 2020 and September 2020 for
non-executive directors.
2. Joined on 25 September 2019 and 19 October 2019: percentages between 2020/21 and 2019/20 have been calculated on a full-time basis. No bonus was paid
for 2019/20 so percentage change between 2020/21 and 2019/20 could not be calculated.
3. First figure includes relocation paid during 2022/23, 2021/22 and 2020/21, the second excludes it.
4. Joined on 13 January 2025.
5. Stepped down from Board on 13 January 2025: percentages between 2023/24 and 2024/25 have been calculated on a full-time basis.
6. Became Chair and stepped down as Remuneration Committee Chair on 20 June 2024. These changes in role are reflected in the percentage changes
between 2023/24 and 2024/25.
7. Joined on 2 November 2020 and became Senior Independent Director on 29 January 2021. Fee for this role was £20,000, and £20,600 from 1 February 2024,
on top of non-executive director fees. Percentages for 2021/22 have been calculated assuming full-time basis.
8. The percentage change between 2021/22 and 2022/23 for the non-executive directors reflect that members of the Audit, Remuneration and Responsible
Business Committees receive a fee of £10,000 from 1 February 2022.
9. Started to receive a fee of £20,000 for Chair of Responsible Business Committee from 1 February 2021. Became a member of the Remuneration Committee
in June 2023.
10. Became Remuneration Committee Chair on 20 June 2024.
11. Joined on 1 May 2022. The percentage change for 2023/24 is calculated using full time equivalent fees for 2022/23.
12. Joined on 1 January 2025.
13. Joined on 20 January 2025.
14. Stepped down from his role as Chair of the Board at the AGM on 20 June 2024. Percentage for 2024/25 is calculated assuming full-time basis.
15. The % change in the taxable benefits for employee population is related to the impact Covid-19 had on expenses and benefits claimed during the year.
16. Includes all UK employees including those in B&Q, Screwfix and Screwfix Spares.
111Kingfisher 2024/25 Annual Report and Accounts
Relative importance of spend on pay
The table below shows the relative importance of spend on employee remuneration when compared with distributions to shareholders.
2024/25
£m
2023/24
£m Percentage change
Overall expenditure on pay 2,125 2,068 2.8%
Share buybacks undertaken during the year
1
225 160 40.6%
Total dividends paid in the year 228 237 (3.8%)
1. During the year, the Group purchased 83 million of the company’s own shares for cancellation at a cost of £225 million as part of its capital returns programme.
Pay ratio analysis
Year Method
25
th
percentile
pay ratio
Median
pay ratio
75
th
percentile
pay ratio
2024/25
Option B (i.e. 25
th
percentile, median and 75
th
percentile individual identified from
our April 2024 gender pay gap analysis) 98:1 91:1 82:1
2023/24 Option B
1
258:1 247:1 221:1
2022/23 Option B 93:1 86:1 80:1
2021/22 Option B 127:1 116:1 113:1
2020/21 Option B 95:1 93:1 71:1
2019/20 Option B 71:1 64:1 56:1
2018/19 Option B 106:1 97:1 81:1
1. Ratios for 2023/24 have been restated using actual share price at vesting of 2021 Alignment Share Award and Delivering Value Incentive awards of 248.2p and
275.1p respectively.
We have used Option B in the legislation to leverage the analysis completed as part of our UK gender pay gap reporting exercise.
We have determined our 25
th
percentile, median and 75
th
percentile individual using data from the respective 5 April snapshots. While
gender pay gap legislation and CEO pay ratio legislation employ different calculations, the three identified UK employees receive
similar remuneration structures, and therefore we are confident that they also represent broadly the same respective percentiles
when calculated using the single figure of total remuneration methodology required in the CEO pay ratio calculation. Where relevant,
each colleague’s pay and benefits were calculated on a full-time equivalent basis, and no further adjustments were made. The values
for total remuneration for the 25
th
percentile, median and 75
th
percentile were £23.4k, £25.0k and £28.0k respectively comprising
salary and employer contribution to pension. The salaries for these employees were £23.0k, £24.2k and £26.8k respectively.
The majority of the Group’s workforce are store based. Given this workforce profile, the pay and benefits data used to calculate the
CEO pay ratio are from colleagues who are store based. These colleagues’ reward structure comprises primarily fixed components
while the CEO’s total remuneration is strongly linked to performance with a significant variable component. The year-on-year change
at median can be attributed to the outturns of variable pay elements of the CEO in any given year, including most recently in respect
of the outcomes in the annual bonus and PSP awards. 2024/25 was the first year of vesting of the PSP. Prior to this, the DVI was in
operation (as set out in full detail in last year’s Directors’ remuneration report), which was a one-off award that combines three years’
worth of long-term incentive opportunity into a single grant. This therefore inflated the single year figure in which the award vested
(2023/24) and resulted in greater volatility in our historic pay ratio analysis. The remuneration structures for our colleagues are
aligned to the market and to our remuneration principles. It is, therefore, the Committee’s view that the ratios remain consistent
with pay and progression policies for UK employees.
Directors’ remuneration report continued
Other Information
112 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Executive directors’ shareholdings and share interests (audited information)
Executive directors are required to build a significant shareholding in the company. Unvested awards are not included when assessing
holding requirements. Vested awards are included when assessing holdings but are adjusted to take into account the tax liability
arising on exercise.
The table below sets out the beneficial interests of the executive directors (or any connected persons) in the ordinary shares of the
company and a summary of the outstanding share awards as at 31 January 2025. Calculations are based on a share price of 246.2p
per share (being the closing price of a Kingfisher share on 31 January 2025).
Shares held Awards over nil-cost options
Name Number of shares held outright
Vested but not
exercised
1
Unvested and
subject to
continued
employment
Unvested and
subject to
performance
conditions and
continued
employment
2
Shareholding
requirement
(% of base
salary)
3
Shareholding
as of 31 Jan 25
(% of base
salary)
4
31 Jan 25 31 Jan 24
Thierry Garnier
5
487,357 100,000 867,408 – 3,161,121 350% 254.0%
Bhavesh Mistry
5
0 – – – – 270% 0%
Former executive director
Bernard Bot
6
80,000 80,000 1,291,878 – 2,110,753 270% 290.4%
1. Nil-cost options and awards that have vested but have yet to be exercised are considered to count towards the shareholding requirement, other than any
such shares that correspond to the estimated income tax and national insurance contributions that would arise on their exercise (estimated at 47% of the
award). For Thierry Garnier and Bernard Bot, these awards include the 2019, 2020 and 2021 Alignment Share awards and 2019 Delivering Value Incentive
awards which vested in 2022, 2023 and 2024 (both for the 2021 Alignment Share and 2019 Delivering Value Incentive award) respectively.
2. These awards include nil-cost options to Thierry Garnier and Bernard Bot in respect of the 2022, 2023 and 2024 Performance Share Plan awards.
3. Shareholding requirement as of 31 January 2025.
4. Between 1 February 2025 and the date of this report, there were no changes in the beneficial interests of the executive directors’ shareholdings.
5. As potential beneficiaries of the Kingfisher Employee Benefit Trust (the Trust), Thierry Garnier and Bhavesh Mistry are deemed to have an interest in the
company’s ordinary shares held by the Trust. The Trust held 11,488,097 ordinary shares at 31 January 2025.
6. Bernard Bot served as CFO until 13 January 2025. The figures in the table above reflect his time served as an Executive Director only.
Share awards made during the financial year (audited information)
Options and awards over shares were made during the year ended 31 January 2025 under the Kingfisher Performance Share Plan
rules (KPSP) in respect of the 2024 Performance Share Plan (PSP) award.
2024 Performance Share Award
Name Date of grant
1
Number of shares
Face value of award
2
£’000
End of
performance
period
3
Final exercise
date
4
Thierry Garner 25 Apr 24 1,015,571 2,509 31 Jan 27 25 Mar 34
Bernard Bot 25 Apr 24 678,121 1,676 31 Jan 27 25 Mar 34
1. Vesting date of 25 April 2027.
2. The number of shares, at the time of grant, was based on 275% and 260% of base salary for the CEO and CFO respectively and the three-day average closing
share price preceding the date of grant. The awards were made under the KPSP and the value above is based on the closing share price as at the date of
grant, of 247.1p per share, for 25 April 2024.
3. The shares will vest subject to performance against the performance conditions over the period to the end of the 2026/27 financial year.
4. The awards are structured as nil-cost options and have an exercise period of seven years less one month.
113Kingfisher 2024/25 Annual Report and Accounts
The performance conditions attached to the 2024 Performance Share Award are as follows:
Target 2026/27 EPS (25% weighting) 2026/27 ROCE (25% weighting)
TSR percentile vs. relative
TSR peer group (25% weighting)
Threshold (25% vesting) 23.0p 8.20% 50
th
Stretch (100% vesting) 30.1p 10.15% 75
th
ESG
(25% weighting)
Target
Climate change
(reduction in Scope 1 and 2 emissions)
Sustainable Home Products
(% of total Group sales)
Gender diversity
(% of women in senior leadership)
Threshold (25% vesting) 52.0% 53.0% 31.0%
Target (50% vesting) 55.0% 58.0% 34.0%
Stretch (100% vesting) 62.0% 61.0% 37.0%
For the EPS, ROCE and Relative TSR measures, there will be straight-line vesting between Threshold and Stretch. For the ESG
measures, there will be straight-line vesting between Threshold and Target, and Target and Stretch.
TSR will be measured against the combined group of the constituents of the FTSE 350 Retailers, FTSE 350 Drug and Grocery Stores
as well as the STOXX 600 Drug and Grocery Stores as at 1 February 2024.
Any vested awards will be subject to a two-year holding period.
2025 Performance Share Plan Award
In line with the approved Remuneration Policy, the Committee intends to grant Thierry Garnier and Bhavesh Mistry a PSP award with
a maximum opportunity of 275% and 260% of base salary respectively at the next grant date (expected to be late April 2025). These
grants will also be in line with the proposed Remuneration Policy once approved.
The measures for the 2025 grant will be mostly consistent with those adopted for the 2024 award, however we have replaced the
ROCE measure with a Cumulative FCF measure. Further detail on rationale for Cumulative FCF inclusion can be found on page 90.
The measures and targets attached to the vesting of the 2025 award are as follows:
Target 2027/28 EPS (25% weighting) Cumulative FCF (25% weighting)
TSR Percentile vs. relative
TSR peer group (25% weighting)
Threshold (25% vesting) 23.0p £1,135m 50
th
Stretch (100% vesting) 30.8p £1,535m 75
th
ESG
(25% weighting)
Target
Climate change
(reduction in Scope 1 and 2 emissions)
Sustainable Home Products
(% of total Group sales)
Gender diversity
(% of women in senior leadership)
Threshold (25% vesting) 57.0% 53.0% 31.0%
Target (50% vesting) 62.0% 58.0% 34.0%
Stretch (100% vesting) 66.0% 61.0% 37.0%
Directors’ remuneration report continued
Other Information
114 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
For the EPS, FCF and Relative TSR measures, there will be straight-line vesting between Threshold and Stretch. For the ESG measures,
there will be straight-line vesting between Threshold and Target and Target and Stretch. These measures have been chosen for the
PSP as EPS, FCF and ESG are aligned to the strategy while Relative TSR ensures that payouts for participants are aligned to long-term
value creation for shareholders. ESG in particular was chosen to reflect the importance of our Responsible Business agenda and to
recognise our long-term goals and commitments. The chosen ESG measures are all core elements of our agenda.
All three ESG measures will be weighted equally within the ESG basket of measures.
One of the key reference points for setting the EPS and FCF targets is the Group’s internal three-year plan which in itself takes into
account the continued uncertainty in the external operating environment. The Committee also reviewed the target ranges taking into
account external consensus and concluded that the ranges for EPS and FCF appropriately balance being achievable yet stretching.
EPS will be based on ‘pence’ in line with last year. Cumulative FCF is a sum of the FCF in 2025/26, 2026/27 and 2027/28.
For ESG measures, targets have been set using our long-term public commitments, internal targets as well as 2024/25 outturns.
— For climate change (reduction in Scope 1 and 2 carbon emissions from a 2016/17 baseline), the target took into account our
significant progress to date against our SBTi approved targets including the long term sustainability of targets to date as well as
future targets aligned with our net zero commitments.
— Improving the % of women in our senior leadership population (top c. 300) remains an important and ongoing area of focus.
The range set takes into account our current outturn and the progress required to achieve our long-term aims.
— The SHP range has been developed taking into account current and anticipated progress and our targets.
The Relative TSR measure remains unchanged. Kingfisher’s TSR will be measured against the combined group of the constituents of
the FTSE 350 Retailers, FTSE 350 Drug and Grocery Stores as well as the STOXX 600 Drug and Grocery Stores as at 1 February 2025.
Any vested awards will be subject to a further two-year holding period.
Scheme interests exercised during the financial year (audited information)
On 25 September 2024, Thierry Garnier exercised 1,447,573 nil-cost options which had been granted to him in 2019 as Delivering
Value Incentive (DVI) awards, under the Kingfisher Alignment Shares and Transformation Incentive Plan (KASTIP).
Name and Scheme
Number of shares
exercised
Exercise price per share
(p)
Total exercise price
(£’000) Date of exercise
Market value
of shares
at date of
exercise (p)
Gain on exercise of
options (£’000)
Thierry Garnier
(Delivering Value
Incentive) 1,447,573 Nil Nil
25 September
2024 325.9 4,718
682,743 vested shares were then sold on the same day, to satisfy tax and National Insurance liabilities.
As indicated in the Company’s 2023/24 Annual Report released in April 2024, and in accordance with the approved Directors’
Remuneration Policy, on 26 September 2024, Thierry subsequently sold 50% of the resulting shares (382,415 shares sold at a share
price of 323.6p) and retained the remaining 50% (382,415).
Dilution limits
The terms of the company’s current share plans set limits on the number of newly issued shares that may be issued to satisfy awards.
In accordance with guidance from the Investment Association at the time of drafting, these limits restrict overall dilution under all plans to
under 10% of the issued share capital over a 10-year period, with a further limitation of 5% in any 10-year period on executive plans.
Only those awards granted under the Kingfisher Sharesave plan are satisfied by newly issued shares.
Any awards that are satisfied by market-purchased shares are excluded from these calculations, including all awards made under the
Kingfisher Alignment Share and Transformation Incentive Plan (KASTIP), Kingfisher Performance Share Plan (KPSP) and Kingfisher
Share Award Plan (KSAP).
No treasury shares were held or utilised in the year ended 31 January 2025.
115Kingfisher 2024/25 Annual Report and Accounts
Single total figure of remuneration for the non-executive directors (audited information)
Fees payable to non-executive directors
The table below sets out the remuneration of each non-executive director during the financial year ended 31 January 2025 and the
comparative figures for the year ended 31 January 2024. During the year, no payments were made to non-executive directors for
expenses other than those incurred in the ordinary course of their appointments.
Name Additional responsibilities
Committee
membership
1
Fees 2024/25
£’000
Fees 2023/24
£’000
Taxable benefits
2024/25
£’000
Taxable benefits
2023/24
£’000
Total 2024/25
£’000
Total 2023/24
£’000
Claudia Arney
2
Chair, Nomination
Committee Chair N 353.5 89.0 — – 353.5 89.0
Catherine Bradley
Senior Independent
Director A, R, N 112.2 109.0 — – 112.2 109.0
Jeff Carr Audit Committee Chair A, R, N 101.9 99.0 — – 101.9 99.0
Sophie
Gasperment
3
Responsible Business
Committee Chair R, N, RB 101.9 94.8 — – 101.9 94.8
Rakhi Goss-
Custard
4
Remuneration
Committee Chair A, R, N, RB 108.2 99.0 — – 108.2 99.0
Bill Lennie A, N 81.3 79.0 — – 81.3 79.0
Lucinda Riches
5
A, R, N, RB 8.5 — — — 8.5 —
Ian McLeod
6
N 2.6 — — — 2.6 —
Former directors
Andrew Cosslett
7
Former Chair 217.4 530.3 0.5
8
1.3
8
217.9 531.6
Total 1,087.5 1,100.1 0.5 1.3 1,088.0 1,101.4
1. Indicates which directors served on each committee on 31 January 2025: Audit Committee = A; Nomination Committee = N; Remuneration Committee = R;
Responsible Business Committee = RB.
2. Claudia Arney became Chair at the AGM on 20 June 2024. For her role as Chair she receives a fee of £496,500 with a contribution of up to £24,830 towards
the cost of an assistant. For 2024/25, she received £13,912 towards the cost of an assistant. Prior to her appointment as Chair, Claudia chaired the
Remuneration Committee.
3. Sophie Gasperment joined the Remuneration Committee in June 2023.
4. Rakhi Goss-Custard became Remuneration Chair in June 2024.
5. Lucinda Riches was appointed as a Non-Executive Director and to the Remuneration, Audit, Nomination and Responsible Business Committees effective from
1 January 2025.
6. Ian McLeod was appointed as a Non-Executive Director and to the Nomination Committee effective from 20 January 2025.
7. Andrew Cosslett stepped down from his role as Chair of the Board at the AGM on 20 June 2024. He received a pro-rated fee up to and including 20 June
2024. The fees paid to Andrew Cosslett include a contribution towards the costs of an assistant.
8. These relate to private medical cover for Andrew Cosslett and his family.
Directors’ remuneration report continued
Other Information
116 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Notes to the single total figure of remuneration for the non-executive directors (audited information)
Fees
Fees paid to the Chair and non-executive directors for 2024/25 and 2023/24 are shown below. No benefits are provided except for
a store discount card of up to 20%.
Fees
£’000
As at
1 February 2024
As at
1 February 2023 % increase
Chair
1
546.2 530.3 3%
Non-executive director fee
2
71.0 69.0 3%
Senior Independent Director 20.6 20.0 3%
Audit Committee Chair 20.6 20.0 3%
Remuneration Committee Chair 20.6 20.0 3%
Responsible Business Committee Chair 20.6 20.0 3%
Audit Committee member 10.3 10.0 3%
Remuneration Committee member 10.3 10.0 3%
Responsible Business Committee member 10.3 10.0 3%
1. The Committee reviewed the fee for the company Chair in 2024 and agreed to increase the fee by 3%. Andrew Cosslett subsequently stepped down from his
role as company Chair at the AGM on 20 June 2024. Claudia Arney was appointed to the role from 20 June 2024, receiving a fee of £496,500 (consistent with
the fee received by the former Chair), and a contribution of up to £24,830 for administrative support.
2. The Board reviewed the non-executive fees in 2024 and agreed to increase the fee by 3%.
Non-executive directors’ shareholdings (audited information)
The table below sets out the current shareholdings of the non-executive directors (including beneficial interests and interests of
persons closely associated) as at 31 January 2025. The company does not operate a share ownership policy for the non-executive
directors but encourages non-executive directors to acquire shares on their own account.
Number of shares held outright as at
31 January 2025
Number of shares held outright as at
31 January 2024
Andrew Cosslett 388,556 388,556
Catherine Bradley 20,000 20,000
Claudia Arney 27,762 27,460
Jeff Carr 210,000 210,000
Sophie Gasperment 10,110 10,110
Rakhi Goss-Custard 6,124 6,124
Bill Lennie 170,000 170,000
Lucinda Riches 0 n/a
Ian McLeod 0 n/a
The shareholding set out above for Andrew Cosslett is as at 20 June 2024 when he stepped down as a Director. There have been no
changes to the beneficial interests of the non-executive directors between 1 February 2025 and 24 March 2025.
117Kingfisher 2024/25 Annual Report and Accounts
Statement on the implementation of the Remuneration Policy for 2025/26
Implementation of the Policy for executive directors for the year ahead
Base salary A 2% salary increase will be awarded to Thierry Garnier effective from 1 April 2025, and his new salary will therefore
be £936,190. No salary increase has been awarded to Bhavesh Mistry. The salaries are in line with the Policy and the
increase is in line with that offered to the wider UK head office workforce.
Benefits Will be implemented in line with the Policy.
Pension 12.5% of salary cash allowance in lieu of pension contributions, which is in line with the offering to the wider UK
workforce. This is in line with the Policy.
Annual Bonus Will be awarded in line with the Policy.
The 2025/26 Annual Bonus will have a maximum opportunity of 200% of salary for the CEO and 190% of salary for
the CFO and will be judged based on the achievement of financial and individual measures, as set out below:
— 40% LFL sales growth
— 40% Adjusted pre-tax profit
— 20% Individual measures
A holistic assessment of Group performance will also be taken into consideration.
Any bonus earned over 100% of salary will be deferred into shares for three years subject to the shareholding
requirement being met.
In the opinion of the Committee, the details of the Annual Bonus measures and targets for 2025/26 are commercially
sensitive as they closely align with annual business priorities and accordingly are not disclosed. These will be
disclosed in the 2025/26 Annual Report and Accounts.
Performance Share Plan Will be awarded in line with the Policy.
The 2025 Performance Share Plan awards will be granted at the next available grant date. The CEO will be granted
an award of the value of 275% of salary at date of grant with the CFO receiving a grant of 260% of salary.
The performance conditions attached to the vesting of awards are as follows:
— 25% EPS
— 25% Cumulative FCF
— 25% Relative TSR
— 25% ESG measures (Climate change, Sustainable Home Products, Gender diversity)
Details of the target ranges for the 2025 PSP are detailed on pages 114 and 115.
Performance will be measured over three years, with awards vesting three years after the grant date. Any vested
awards will be subject to an additional two-year holding period.
Implementation of the Remuneration Policy for non-executive directors for the year ahead
Fees
£’000
As at
1 February 2025
As at
1 February 2024 % increase
Chair
1
531.7 521.3 2.0%
Non-executive director fee 72.4 71.0 2.0%
Senior Independent Director fee 21.0 20.6 2.0%
Audit Committee Chair 21.0 20.6 2.0%
Remuneration Committee Chair 21.0 20.6 2.0%
Responsible Business Committee Chair 21.0 20.6 2.0%
Audit Committee member 10.5 10.3 2.0%
Remuneration Committee member 10.5 10.3 2.0%
Responsible Business Committee member 10.5 10.3 2.0%
1. Part of the Chair’s fee relates to a contribution to the cost of her assistant per annum. Fee for 2024 relates to current Chair fee as at 20 June 2024.
Directors’ remuneration report continued
Other Information
118 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
The Board reviewed the non-executive directors’ fees in 2024/25 and agreed, effective 1 February 2025, that the base fee
will increase by 2% to £72,400. It was also agreed that the Senior Independent Director, Committee Chair and member fees would
increase by 2% to £21,000, £21,000 and £10,500 respectively.
Separately, in respect of the company Chair’s fee, the Committee has agreed to award a 2% increase to the total current combined
fee of £521,330 (comprising a core £496,500 fee plus up to £24,830 towards the cost of an assistant). This increases the combined
fee to £531,700 (core fee of £506,400 plus up to £25,300 towards an assistant).
The increases for non-executive directors and Chair are in line with the increase being implemented for the wider UK workforce.
Service contracts/letters of appointment
Date of service
contract/letter of appointment
Expiry of
current term
Claudia Arney 20 June 24 31 October 27
Bhavesh Mistry 13 January 25 12 months rolling
Catherine Bradley 2 November 20 1 November 26
Jeff Carr 1 June 18 31 May 27
Thierry Garnier 25 September 19 12 months rolling
Sophie Gasperment 1 December 18 30 November 27
Rakhi Goss-Custard 1 February 16 23 June 25
Bill Lennie 1 May 22 30 April 28
Lucinda Riches 1 January 25 31 December 27
Ian McLeod 20 January 25 19 January 28
Copies of the executive directors’ service contracts and the non-executive directors’ letters of appointment are held at the
company’s registered office address and are available to shareholders for inspection on request. Requests should be sent by email
toshareholderenquiries@kingfisher.com.
The Remuneration Report has been approved by the Board of Directors and signed on its behalf by:
Rakhi Goss-Custard
Chair of the Remuneration Committee
24 March 2025
119Kingfisher 2024/25 Annual Report and Accounts
This report sets out the information the company and the
Groupare required to disclose in the Directors’ report in
compliance with the Companies Act 2006 (the Act), the Financial
Conduct Authority’s UK Listing Rules (UK Listing Rules or UKLR),
the Disclosure Guidance and Transparency Rules (DTRs), and
the UK Corporate Governance Code 2018 (the Code). This
report should be read in conjunction with the Strategic Report
on pages 2 to 68 and theCorporate governance report on
pages 69 to 123. In accordance with Section 414C(11) of the
Act, the company has decided to include certain matters in
its Strategic Report that would otherwise be required to be
disclosed in this Directors’ report. Together, the Strategic
Report, this Directors’ report, andother sections of the
Corporate governance report incorporated by reference,
when taken as a whole, form the Management Report as
required under Rule 4.1.5R of the DTRs.
The table below sets out the location of applicable disclosures
incorporated into the Directors’ report, by reference. The
majority of the disclosures required under UKLR 6.6.1R are not
applicable to the Group except for those referenced in the
table below or included in the disclosure on page 122.
Disclosure Page
Allotment of equity securities (UKLR 6.6.1R) 120
Annual General Meeting (AGM) 203
Corporate Governance report, including reports
from Board committees
69 – 123
Directors’ interests 102 – 119
Directors’ statement of responsibility 123
Diversity and inclusion 16 – 18, 79 – 80
Details of the directors who served during
theyear
71
Employee share schemes note 31
Equal opportunities including disabled employees 18
Financial instruments and financial
risk management
note 24, note 25
Financial review (UKLR 6.6.1R) 47 – 55
Future developments 2 – 68
Viability statement and going concern 66 – 68
Governance and risk management for climate change 30 – 46
Interest capitalised by the Group (UKLR 6.6.1R) note 7
Important events since the end of the financial year note 38
Key performance indicators 12 – 13
People and development 16 – 18
Risk management and internal control 60 – 65, 86 – 87
Statement on engagement with employees 16 – 18, 22, 81
Statement on engagement with external
stakeholders
21 – 24
Streamlined Energy and Carbon Reporting 44 – 46
Waiver of dividends (UKLR 6.6.1R) 121
Directors’ report
Articles of Association (Articles)
The Articles of the company may only be amended by special
resolution at a meeting of the shareholders. The Articles are
available on the company’s website.
Branches
The Kingfisher Group, through various subsidiaries, has
established branches in a number of countries in which
thebusiness operates.
Directors
The Board and their biographical details are set out on pages
72and 73. Details of the directors’ interests in the shares of
thecompany can be found in the Directors’ remuneration report
on pages 113 and 117. Directors are appointed and replaced
inaccordance with the Articles, the Act, and the Code. Under
theArticles, all directors will retire from office at the next AGM
where they will stand for election or re-election by shareholders.
Directors’ indemnity arrangements
The directors who served on the Board during the year have
been granted a qualifying third-party indemnity, under the Act,
which remains in force. The Group also maintains Directors’
and Officers’ liability insurance in respect of its directors and
officers, and the directors of the Group’s subsidiary companies.
Neither the company’s indemnity nor insurance provide cover
ifan indemnified individual is proved to have acted fraudulently
ordishonestly.
Directors’ powers
Subject to provisions of the Act, the Articles, and to any
directions given by special resolution, the business of the
company shall be managed by the Board, which may exercise
allthe powers ofthe company.
Borrowing powers
The directors may exercise all the powers of the company
toborrow money.
Issue of ordinary shares
The directors were authorised by shareholders at the 2024 AGM
to allot shares, as permitted by the company’s Articles. During
the year, 1,228,412 shares were issued under the terms of the
Sharesave Plan at prices between 159.0 pence and 275.0 pence
per share.
This resolution was in line with guidance issued by the Investment
Association and remains in force until the conclusion of the 2025
AGM, or if earlier, until close of business on 19 September 2025.
The company will seek to renew this standard authority at the
2025 AGM.
Other Information
120 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Purchase of own shares
The Group’s objectives in managing capital are: to invest in the
business where economic returns are attractive; maintain a solid
investment grade credit rating; safeguard the Group’s ability to
continue as a going concern and retain financial flexibility; and
provide attractive returns to shareholders. If surplus capital
remains after having achieved all these objectives, the Board
will return surplus capital to shareholders via a share buyback
programme or special dividends.
In September 2023, the company announced the return of
£300m of surplus capital via a share buyback programme
(the Programme). This Programme is carried out under the
authority granted by shareholders for the company to
purchase its own shares.
Shareholders approved a resolution at the 2024 AGM for the
company to make purchases of its own shares up to a maximum
of 10% of its issued share capital.
During the year, a total of 82,708,323 ordinary shares, with a
nominal value of 15
5/7
pence per share, were repurchased under
the Programme at an average price of £2.71 per share, for a total
consideration of £224m (excluding stamp duty). This represents
4.6% of the company’s issued share capitalfor the year ended
31 January 2025.
The Programme completed on 19 March 2025. Between
1 February 2025 and 19 March 2025, 10,140,768 ordinary
shares of 15
5/7
pence per share were purchased, bringing the
total shares purchased to 92,849,091 as at 19 March 2025, at an
average price of £2.69 per share, and for a total consideration of
£250 million (excluding stamp duty). The total shares purchased
between 1 February 2024 and 19 March 2025 represent 5.2% of
the company’s issued share capital.
All shares purchased under this authority have been cancelled.
This resolution is in line with guidance issued by the Investment
Association and remains in force until the conclusion of the 2025
AGM, or if earlier, until close of business on 19 September 2025.
The company will seek to renew this standard authority at the
2025 AGM.
Conflicts of interest
The company has robust procedures in place to identify,
authorise and manage potential or actual conflicts of interest,
and these procedures have operated effectively during the
year. Where potential conflicts arise, they are reviewed, and if
appropriate, approved by the Board. Processes for managing
such conflicts are put in place to ensure no conflicted director
is involved in any decision related to their conflict.
Directors’ other key appointments are set out in the directors’
biographies on pages 72 and 73.
Dividends
The interim dividend of 3.80p per ordinary share was paidon
15 November 2024. The Board is recommending a finaldividend
of 8.60p per ordinary share, making a total ordinary dividend for
the year of 12.40p per ordinary share. The total final dividend
for the year ended 31 January 2025 based on the issued share
capital as at 31 January 2025 is expected to be c. £154 million.
The final amount may vary depending on share movements
between the balance sheet and payment date. Subject to the
approval of shareholders at the 2025 AGM, the final dividend
will be paid on 30 June 2025 to shareholders on the register
on 23 May 2025.
The Kingfisher Employee Benefit Trust, Wealth Nominees
Limited (the Trust), waived the following dividends payable
bythe company in respect of the ordinary shares it held.
TheTrustee has agreed to waive its rights to all dividends
payable on the ordinary shares held in the Trust:
Dividend
Number of shares waived
(% of holding)
Total value ofdividends
waived
Final 2023/24
(paid June 2024)
17,357,979
100% £1,492,786.20
Interim 2024/25
(paid November 2024)
12,280,128
100% £466,644.86
Total for year to
31 January 2025 £1,959,431.06
Major shareholdings
As at 31 January 2025, the company had been notified under
Rule 5 of the DTRs of the following interests in voting rights in
its shares. The information below wascalculated at the date on
which the relevant disclosures were made in accordance with
the DTRs; however, the percentage of total voting rights held
by each may have changed since the company was notified.
% of total voting rights
Silchester International Investors LLP 13.04
BlackRock, Inc. 7.21
Mondrian Investment Partners Limited 4.95
T. Rowe Price Associates, Inc. 4.94
Norges Bank 3.07
The following notifications were received after 31 January 2025
up to 24 March 2025:
% of total voting rights
Norges Bank 3.29
Silchester International Investors LLP 14.02
Political donations
The company made no political donations during the year
(2023/24: £nil) and does not intend to make any political
donations in the future.
As is our policy and practice, the company will continue to seek
shareholder approval annually to enable us to make donations or
incur expenditure in relation to political parties, other political
organisations, or independent election candidates. This is on
a precautionary basis to avoid any unintentional breach of
the relevant provisions set out in the Act.
121Kingfisher 2024/25 Annual Report and Accounts
Research and development
The company undertakes research and development activities
to develop its digital capability. In addition, the company
undertakes product development activities using learnings
gained by understanding our customer’s challenges living and
working at home and engaging with home improvement projects.
More information is available on pages 2 to 68 of the Strategic Report.
Share capital
The share capital of the company comprises ordinary shares
of15
5/7
pence per share. All the company’s issued shares are fully
paid up and each share carries the right to one vote at general
meetings of the company. The issued share capital of the
company, together with movements in the company’s issued
share capital during the year, are shown in note 29 tothe
consolidated financial statements. The Articles contain
provisions governing the ownership and transfer of shares.
The holders of ordinary shares are entitled to receive the
company’s Annual Report and Accounts, to attend and ask
questions at general meetings, to appoint proxies and to
exercise voting rights. There are no restrictions on the transfer
of ordinary shares or on the exercise of voting rights attached
to them, except (i) where the company has exercised its right
tosuspend voting rights or to prohibit their transfer following
the omission of their holder or any person interested in them
toprovide the company with information requested by it in
accordance with Part 22 of the Act, or (ii) where their holder
isprecluded from transferring or otherwise dealing with the
shares or exercising voting rights by the UK Listing Rules, the
City Code on Takeovers and Mergers, or applicable Government
sanctions. No person has any special rights of control over
thecompany’s share capital and all issued shares are fully paid.
The company has a Sponsored Level 1 American Depositary
Receipt programme in the United States.
Significant agreements – change of control
There are a number of agreements that take effect, alter or
terminate upon a change of control of the company following
a takeover bid. These are deemed to be significant in terms of
their potential impact on the business of Kingfisher as a whole.
These are:
— The £650 million revolving credit facility dated 28 May 2021,
as amended and restated on 31 May 2024, between the
company, National Westminster Bank plc (as the facility
agent) and the banks named therein as lenders, which
provides that, subject to certain exceptions, in the event
of a change of control of the company, a lender willnot
be obliged to fund a utilisation request and may notify the
agent that they wish to cancel their commitment resulting
in the commitment of that lender being cancelled and
all outstanding loans, together with accrued interest,
becoming immediately due and payable to that lender.
— The £50 million loan facility dated 23 December 2022
between the company and National Westminster Bank plc,
which contains a provision such that in the event of a
change of control, the bank will not be obliged to fund
autilisation request and may cancel its commitment
whereupon all outstanding loans together with accrued
interest will become immediately due and payable.
— The £50 million loan facility dated 16 January 2023 between
the company and Caixabank, S.A., United Kingdom Branch,
which contains a provision such that in the event of a
change of control, the bank will not be obliged to fund
autilisation request and may cancel its commitment
whereupon all outstanding loans together with accrued
interest will become immediately due and payable.
There are no agreements in place with any director or
officer that would provide compensation for loss of office or
employment resulting from a takeover, except that provisions
of the company’s share incentive schemes may cause options
and awards granted under such schemes to vest on a takeover.
Information required by UKLR 6.2.23R
In its Q3 Trading Update to 31 October 2024, the Company
provided the following guidance for the financial year ending
31 January 2025:
— Adjusted Profit Before Tax of c. £510m to £540m
(previously c. £510m to £550m); and
— Free Cash Flow guidance of c. £410m to £460m.
For the purpose of UKLR 6.2.23R, the Company confirms that
2024/25 Adjusted Profit Before Tax was £528m and Free Cash
Flow was £511m, both in line with, or ahead of, previously
announced guidance.
Disclosure of information to auditor
Each person who is a director at the date of approval of this
report confirms that:
— So far as he or she is aware, there is no relevant audit
information of which the company’s auditor is unaware.
— Each director has taken all the steps that he or she ought
tohave taken as a director to make himself or herself aware
of any relevant audit information and to establish that the
company’s auditor is aware of that information.
This confirmation is given and should be interpreted in
accordance with the provisions of Section 418 of the Act.
Directors’ report approval
The directors’ report was approved by a duly authorised
committee of the Board of Directors on 24 March 2025
and signed on its behalf by
Chloe Barry
Company Secretary
24 March 2025
Directors’ report continued
Other Information
122 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Responsibility for preparing the financial statements
The directors are responsible for preparing the Annual Report
and the financial statements in accordance with applicable law
and regulations.
Company law requires the directors to prepare financial
statements for each financial year. Under that law, the directors
are required to prepare the Group financial statements in
accordance with international accounting standards in conformity
with the requirements of the Companies Act 2006 (the ‘Act’).
The financial statements also comply with International Financial
Reporting Standards (IFRSs) as issued by the IASB. The directors
have elected to prepare the parent company financial statements
in accordance with United Kingdom Generally Accepted
Accounting Practice (United Kingdom Accounting Standards
and applicable law) including FRS 101 ‘Reduced Disclosure
Framework’. Under company law, the directors must not approve
the financial statements unless they are satisfied that they give a
true and fair view of the state of affairs of the company and of
the profit or loss of the company for that period.
In preparing the parent company financial statements,
thedirectors are required to:
— Select suitable accounting policies and then apply
themconsistently.
— Make judgements and accounting estimates that are
reasonable and prudent.
— State whether applicable UK Accounting Standards have
been followed, subject to any material departures disclosed
and explained in the financial statements.
— Prepare the financial statements on the going concern
basisunless it is inappropriate to presume that the company
will continue in business.
In preparing the Group financial statements in accordance with
IAS 1, ‘Presentation of financial statements’, the directors are
required to:
— Select suitable accounting policies and then apply
them consistently.
— Present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and
understandable information.
— Provide additional disclosures when compliance with the
specific requirements of the financial reporting framework
are insufficient to enable users to understand the impact
ofparticular transactions, other events and conditions on
the entity’s financial position and financial performance.
— Make an assessment of the company’s ability to continue
asa going concern.
Statement of directors’ responsibilities
The directors are responsible for keeping adequate accounting
records that are sufficient to show and explain the company’s
transactions and disclose with reasonable accuracy at any time
the financial position of the company and enable them to ensure
that the financial statements comply with the Act. They are
responsible for safeguarding the assets of the company and
for taking reasonable steps for the prevention and detection
of fraud and other irregularities.
The directors are responsible for the maintenance and integrity
of the corporate and financial information included on the
company’s website. Legislation, regulation and practice in the
United Kingdom governing the preparation and dissemination
offinancial statements may differ from legislation, regulation
andpractice in other jurisdictions.
Responsibility statement
The directors confirm that to the best of their knowledge:
— The financial statements, prepared in accordance with the
relevant financial reporting framework, give a true and fair
view of the assets, liabilities, financial position and profit or
loss of the parent company and the undertakings included
inthe consolidation taken as a whole.
— The Strategic Report includes a fair review of the development
and performance of the business and the position of the
company and the undertakings included in the consolidation
taken as a whole, together with a description of the principal
risks and uncertainties they face.
— The Annual Report and Accounts, taken as a whole, are fair,
balanced, and understandable, and provide the information
necessary for shareholders to assess the company’s
position, performance, business model and strategy.
Approval of the statement of directors’ responsibilities
The statement of directors’ responsibilities was approved by
aduly authorised committee of the Board of Directors on
24March 2025 and signed on its behalf by
Chloe Barry
Company Secretary
24 March 2025
123Kingfisher 2024/25 Annual Report and Accounts
Independent auditors’ report
1. Opinion
In our opinion:
— the financial statements of Kingfisher plc (the ‘parent
company’) and its subsidiaries (the ‘group’) give a true
and fair view of the state of the group’s and of the
parent company’s affairs as at 31 January 2025 and
of the group’s profit for the year then ended;
— the group financial statements have been properly
prepared in accordance with United Kingdom adopted
international accounting standards and IFRS Accounting
Standards as issued by the International Accounting
Standards Board (IASB);
— the parent company financial statements have been
properly prepared in accordance with United Kingdom
Generally Accepted Accounting Practice, including
Financial Reporting Standard 101 “Reduced Disclosure
Framework”; and
— the financial statements have been prepared in
accordance with the requirements of the Companies
Act 2006.
We have audited the financial statements which comprise:
— the consolidated income statement;
— the consolidated statement of comprehensive income;
— the consolidated and parent company statements
ofchanges in equity;
— the consolidated and parent company balance sheets;
— the consolidated cash flow statement; and
— the related notes 1 to 38 to the group financial statements
and 1 to 14 to the parent company financial statements.
The financial reporting framework that has been applied in the
preparation of the group financial statements is applicable law,
United Kingdom adopted international accounting standards and
IFRS Accounting Standards as issued by the IASB. The financial
reporting framework that has been applied in the preparation
ofthe parent company financial statements is applicable law
andUnited Kingdom Accounting Standards, including FRS 101
“Reduced Disclosure Framework” (United Kingdom Generally
Accepted Accounting Practice).
2. Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law.
Ourresponsibilities under those standards are further
describedin the auditor’s responsibilities for the audit
ofthefinancial statements section of our report.
We are independent of the group and the parent company
inaccordance with the ethical requirements that are relevant
toour audit of the financial statements in the UK, including
theFinancial Reporting Council’s (the ‘FRC’s’) Ethical Standard
asapplied to listed public interest entities, and we have fulfilled
our other ethical responsibilities in accordance with these
requirements. The non-audit services provided to the group
andparent company for the year are disclosed in note 8
tothefinancial statements. We confirm that we have not
provided any non-audit services prohibited by the FRC’s
EthicalStandard to the group or the parent company.
We believe that the audit evidence we have obtained is
sufficientand appropriate to provide a basis for our opinion.
Report on the audit of the financial statements
Other Information
124 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
3. Summary of our audit approach
Key audit
matters
The key audit matters that we identified in the current year were:
— Impairment of store-based assets (B&QUKand France) and goodwill (Castorama France); and
— Accuracy of supplier income.
Within this report, key audit matters areidentified as follows:
Newly identified
Increased level of risk
Materiality
The materiality that we used for the group financial statements was £24m which was determined on the basis
ofapproximately 5%of adjusted profit before tax.
Scoping
We focused our group audit scope on all significant trading entities and the group’s head office and support functions.
These accounted for 93% of the group’s revenue, 98% of the group’s profit before tax and 88% ofthegroup’snet assets.
Significant
changes
inour
approach
Impairment of goodwill: We have expanded the scope of our impairment-related key audit matter to also cover
theimpairment of goodwill for Castorama France. Lower forecast cash flows and a higher discount rate have
ledtoa£84m impairment being recorded against theCastorama France goodwill balance. Theimpairment
chargeissensitive to changes in key assumptions, particularly the cash flow forecast and the discount rate.
Theseassumptions are inherently subjective andrequire estimation by management.
Accuracy of supplier income from suppliers: Due to the significance of supplier income, its impact on overall
profitability, and the potential for material misstatement, all of which are further heightened by current market
challenges, we have identified the accuracy of supplier income as a key audit matter for thecurrent year.
Inventory provisioning: In previous years, inventory provisioning was identified as a key auditmatter due to the
complexity and judgement involved in assessing provisions forobsolete andslow-moving inventory. Basedon our
risk assessment, including the reduced level of judgemental adjustments tothe provision compared to the prior
period, wehave concluded that inventory provisioning does not represent akey audit matter for the current year.
4. Conclusions relating to going concern
In auditing the financial statements, we have concluded that the
directors’ use of the going concern basis of accounting in the
preparation of the financial statements is appropriate.
Our evaluation of the directors’ assessment of the group’s and
parent company’s ability to continue to adopt the going concern
basis of accounting included:
— assessing the group’s financing facilities including the nature
of facilities, repayment terms, financial and non-financial
covenants and available undrawn committed facilities;
— assessing the key assumptions used in the group’s forecasts
by evaluating past performance, our understanding of the
group’s strategic initiatives to grow revenues and reduce
costs, external benchmarks and market analysis, and
management’s rationale for future assumptions;
— assessing the impact of reasonably possible downside
scenarios linked to the group’s identified principal risks on the
group’s funding position, including forecast financial covenants
and their compliance over the going concern period;
— assessing under what circumstances the group would require
additional funding and determining whether such ascenario
was likely to occur;
— recalculating the amount of liquidity and covenant headroom
in the forecasts;
— evaluating the integrity of the model used to prepare the
forecasts, which includes testing of clerical accuracy of
those forecasts;
— assessing the historical accuracy of forecasts prepared by
management; and
— assessing whether the disclosures in relation to going concern
are appropriate.
Based on the work we have performed, we have not identified
any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the
group’s and parent company’s ability to continue as a going
concern for a period of at least twelve months from when the
financial statements are authorised for issue.
In relation to the reporting on how the group has applied the UK
Corporate Governance Code, we have nothing material to add
or draw attention to in relation to the directors’ statement in the
financial statements about whether the directors considered it
appropriate to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the directors with
respect to going concern are described in the relevant sections
of this report.
125Kingfisher 2024/25 Annual Report and Accounts
5. Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
statements of the current period and include the most significant assessed risks of material misstatement (whether or not due
tofraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy; the allocation
of resources in the audit; and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon,
and we do not provide a separate opinion on these matters.
5.1. Impairment of store-based assets (B&Q UK and France) andgoodwill (CastoramaFrance)
Key audit matter
description
Background and relevant account balances
As at 31 January 2025, property, plant and equipment totalled £3,105 million (31 January 2024: £3,206 million)
and right-of-use assets totalled £1,771 million (31 January 2024: £1,881 million), as disclosed in notes 15 and 17
tothe financial statements.
In the current year, the group recorded a net store-based asset impairment charge of £94 million (31 January
2024: net impairment charge of £76 million) across the stores or Cash Generating Units (‘CGUs’). Of this total
net charge, £118 million (31 January 2024: £104 million) represented an impairment charge and £24 million
(31 January 2024: £28 million) related to reversals of previously-recorded impairments.
As at 31 January 2025, goodwill totalled £2,312 million (31 January 2024: £2,398 million), as disclosed
innote13to the financial statements.
In the current year, the group recorded an impairment charge of £84 million against goodwill
associatedwithCastorama France, leaving £140 million of goodwill allocated to Castorama France
posttheimpairment charge.
Overview of key audit matter
Given the ongoing difficult trading conditions, there is an increased level of judgement and estimation
required to determine the value in use of the relevant cash-generating units (CGUs) tested for impairment,
as required by IAS 36, ‘Impairment of Assets’.
We have expanded the scope of our impairment-related key audit matter to also cover the impairment
ofgoodwill for Castorama France. Lower forecast cash flows and a higher discount rate have led
toa£84mimpairment being recorded against the Castorama France goodwill balance.
There are several judgements in assessing value in use that are set out below and there is a risk that the
netimpairment charge recorded is not reasonable based on the assumptions used in the model. Cash flow
forecasting is inherently judgemental, and we have determined that there is a potential fraud risk associated
with the cash flow forecast assumptions used in the impairment model, which could be manipulated by
management to achieve a desired outcome.
The two key assumptions applied by management, in the group’s store-based asset and goodwill impairment
assessments are:
— forecast short term cash flows, which include the sales assumptions and future gross margin and profit
margins that will be achieved. This includes the expected improvement in market conditions and the
ability to realise internal strategic initiatives, whichmanagement have initiated in the current period; and
— the determination of country-specific discount rates.
Other assumptions assessed as part of our audit procedures relating to the impairment assessments:
— long-term growth rates; and
— for store-based assets, determining the vacant possession value of freehold properties, for which
management appoint third-party property valuation experts.
Further details are included within the Audit Committee Report on page 84, key sources of estimation
uncertainty disclosures in Note 3, and Notes 13, 15 and 17 to the financial statements.
Independent auditors’ report continued
Other Information
126 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
5.1. Impairment of store-based assets (B&Q UK and France) andgoodwill (CastoramaFrance) continued
How the scope of our
audit responded to
the key audit matter
Our audit focused on whether store-based asset impairment charges in B&Q UK and France, and goodwill
impairment in Castorama France have been appropriately calculated in accordance with the requirements
of IAS 36, ‘Impairment of Assets’. In doing so, we carried out the following procedures which apply to both
the store-based assets and goodwill impairment tests unless otherwise stated:
— obtained an understanding of the relevant controls in respect of the impairment reviews, including
keyreview controls associated with the group’s budgeting process and impairment models, and the
determination of country-specific discount rates to be used in the models;
— assessed the mechanical accuracy of the impairment models;
— in addressing the fraud risk associated with these cash flow forecasts, we challenged the key inputs into
the value in use model, namely forecast sales growth, gross margin and profit margins by evaluating past
performance, our understanding of the group’s strategic initiatives to grow revenues and reduce costs,
external benchmarks and market analysis, and management’s rationale for future assumptions;
— assessed whether store-level assumptions applied were appropriate by evaluating recent store-level
trading performance compared to prior years and the average trading results across the store estate;
— assessed management’s approach to allocating the board approved three-year plan to individual stores;
— evaluated the discount rates with the involvement of internal valuation specialists to calculate
independently-derived ranges;
— evaluated long-term growth rates applied by benchmarking against external economic forecasts;
— assessed the structure of the business to evaluate the identification and allocation of central overheads
into the respective impairment models;
— for freehold properties, agreed the vacant possession value of freehold property to third party valuation
reports, evaluated the competence and objectivity of management’s appointed valuation experts,
andassessed the inputs and valuation methodology applied with the involvement of internal real estate
specialists; and
— assessed the appropriateness of the financial statements disclosures made.
Key observations
We are satisfied that the net impairment charge recorded in the year and the carrying value of store-based
assets at the year-end within B&Q UK and France, and goodwill associated with Castorama France, including
related disclosures, are appropriate.
127Kingfisher 2024/25 Annual Report and Accounts
5.2. Accuracy of income from suppliers
Key audit matter
description
As outlined in Note 2(e), the Group receives income from suppliers, which is recognized as a deduction
from the cost of sales. This income primarily consists of volume-related rebates related to the purchase
of inventory under agreements that typically follow a 12-month calendar year. Additionally, supplier income
includes other volume-related rebates based on ad-hoc agreements that do not adhere to a calendar year,
as well as amounts linked to funding promotional sales activities, advertising, and marketing contributions.
Given its material impact, supplier income is a significant component of the Group’s overall profitability
andfinancial performance.
The complexity of accounting for rebates arises from several factors, including the interpretation of
contractual terms, as agreements often include tiered structures and variable incentive components.
Furthermore, rebate calculations require extensive transactional data related to inventory purchases
orsalesmade by the Group to customers, increasing the risk of misstatement.
Based on our risk assessment, we have identified a potential fraud risk associated with calendar year-based
volume-related rebates for a number of the Group’s components where rebates of this type make up a
significant proportion of the total rebate income. In addition, for one component, we have assessed the
potential fraud risk to be associated with other types of rebates, including those linked to ad-hoc agreements
and promotional funding, due to this type of rebate income representing the majority of the overall rebate
income amount for this location.
Due to the significance of supplier income, its impact on overall profitability, and the potential for material
misstatement, all of which are further heightened by current market challenges, we have identified the
accuracy supplier income as a key audit matter for the current year.
How the scope of our
audit responded to
the key audit matter
Our audit focused on addressing the risk that supplier income has not been appropriately and accurately
recorded. In doing so, we carried out the following procedures:
— obtained an understanding of relevant controls over income from suppliers;
— obtained direct confirmations from a sample of suppliers to corroborate the amounts recorded
assupplier income;
— made independent enquiries with members of the commercial finance teams to understand
therationalefor any variances in confirmation responses;
— where confirmations were not received, performed alternative procedures, including reviewing contractual
agreements, understanding the terms, and independently recalculating the amounts recognised;
— verified that, for a sample of suppliers, the debit notes received were subsequently paid by tracing
themto a settlement invoice or to cash received; and
— performed analytical procedures, including a review of supplier income recognized for key suppliers
inthe current year compared to prior years, to identify any unusual trends or variances. Additionally,
assessed the accuracy of rebates by comparing the current year rebate listings with prior-year
recordsto identify any significant changes.
Key observations
We are satisfied that supplier income was appropriately recognised during the period.
Independent auditors’ report continued
Other Information
128 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
6. Our application of materiality
6.1. Materiality
We define materiality as the magnitude of misstatement in the financial statements that makes it probable that the economic
decisions of a reasonably knowledgeable person would be changed or influenced. We use materiality both in planning the scope
of our audit work and in evaluating the results of our work.
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
Group financial statements Parent company financial statements
Materiality
£24 million (2023/24: £28 million) £20 million (2023/24: £25 million)
Basis for determining
materiality
Approximately 5% of adjusted profit before tax(2023/24:
c.5%). Adjusting items are defined inNote2awith analysis
included in Note 6.
0.3% of net assets (2023/24: 0.5% of net
assets) which has been capped at 83%
(2023/24: 90%) ofgroup materiality.
Rationale for the
benchmark applied
We have determined materiality on a basis that isconsistent
with 2023/24.
Adjusted profit before tax was selected as the basis of
materiality because this is the primary measure bywhich
stakeholders and the market assess performance of the group.
We excluded adjusting items when determining the basis
for materiality because the items, primarily relating to net
impairment charges of assets, introduce significant volatility
to results and do not form part of the underlying trading
performance ofthe group.
The company is non-trading and contains
investments in all the trading components
of the group.
Group materiality £24.0m
Component performance
materiality range £8.4m to £14.3m
Audit Committee reporting threshold £1.2m
Adjusted PBT
Group materiality
Group materiality
Component performance materiality range max
Component performance materiality range min
Audit Committee reporting threshold
Adjusted PBT
of £528m
129Kingfisher 2024/25 Annual Report and Accounts
6.2. Performance materiality
We set performance materiality at a level lower than materiality to reduce the probability that, in aggregate, uncorrected
andundetected misstatements exceed the materiality for the financial statements as a whole.
Group financial statements Parent company financial statements
Performance
materiality
70% (2023/24: 70%) of group materiality 70% (2023/24: 70%) of parent
company materiality
Basis and rationale
for determining
performance
materiality
In determining performance materiality for both group and the parent company, we considered the
following factors:
— our risk assessment, including our assessment of the group’s overall control environment; and
— the nature, volume and size of misstatements (corrected and uncorrected) in the previous audit,
whichhave not been significant.
6.3. Error reporting threshold
We agreed with the Audit Committee that we would report
totheCommittee all audit differences in excess of £1.2 million
(2023/24: £1.4 million), as well as differences below that threshold
that, in our view, warranted reporting on qualitative grounds.
Wealso report to the Audit Committee on disclosure matters
that we identified when assessing the overall presentation
ofthefinancial statements.
7. An overview of the scope of our audit
7.1. Identification and scoping of components
Our approach to scoping the group audit was to understand
thegroup and its environment, including group-wide controls,
implementing a risk-based approach by developing an
appropriate audit plan for each significant account balance
andassess the risks of material misstatement at the group level.
Thegroup operates over 1,900 stores in eight countries across
Europe. We have focused our group audit scope primarily
onsignificant trading entities and Kingfisher PLC head office.
We have reviewed our audit scope in the current year with
dueconsideration of the risk profile, control environment,
thechanges in the group structure and how much coverage
wewill obtain. As such, we concluded that audit of the entire
financial information to be performed for B&Q UK, Screwfix UK,
Castorama France, Brico Dépôt France, Castorama Poland
andthe parent company. Kingfisher Information Technology
Services UK and property companies associated with the above
trading companies were subject to specified audit procedures
on one or more classes of transactions, account balances or
disclosures associated with defined audit risks. For all other
financial information not covered under the above scope, we
performed analytical procedures at the group level. All financial
reporting is managed by local finance functions with group
oversight from the head office in London.
For the parent company component, we applied a
component performance materiality equal to £14.3m; for the
other components, we used individual component performance
materiality levels determined on the basis of their individual
financial information, which ranged from £8.4m to £14.3m
(2023/24: £9.8m to £17.6m). Our scoping and audit procedures
have provided us significant coverage of the group. The
components that were scoped in for audits of entire financial
information or specified audit procedures represented 93%
(2023/24: 93%) of the group’s revenue, 98% (2023/24: 99%)
of the group’s profit before tax and 88% (2023/24: 95%) of
the group’s net assets.
Audit of the entire financial information
Review at group level
Audit of the entire financial information
Review at group level
Audit of the entire financial information
Specified audit procedures
Review at group level
42%
12%
46%
2%
98%
7%
93%
Revenue Profit before tax Net assets
Independent auditors’ report continued
Other Information
130 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
7.2. Our consideration of the control environment
7.2.1. IT environment
We identified the main finance systems (SAP, CODA, HFM) and
certain other systems, including in-store transaction processing
systems, as the key IT systems relevant to our audit. SAP and
CODA are enterprise resource planning systems used for
day-to-day financial management at the banner level. HFM
isafinancial reporting system used internally to facilitate the
reporting of financial information between the local and group
finance teams. IT systems are primarily managed from the
centralised Kingfisher IT Services function and therefore,
weinvolved a central IT audit team to evaluate the IT
systems tosupport our audit.
We planned to rely on IT controls associated with SAP and
CODA across certain components. We identified general IT
controls relevant to the audit as well as specific IT controls that
supported our controls reliance approach for certain business
processes. Across the in-scope trading entities, IT controls were
relied on to support audit work on the revenue, expenditure and
inventory processes as detailed in Section 7.2.2.
In order to evaluate the operating effectiveness of IT controls,
we performed walk through procedures to understand whether
the purpose of the control was effectively designed to address
the IT related risk and then performed testing of the control
across the audit period, to determine whether the control had
been consistently applied.
Our procedures enabled us to place reliance on IT controls,
asplanned, in the audit approach.
7.2.2. Controls reliance
For all in-scope components, we obtained an understanding of
the relevant controls over key business processes, including
impairment of store-based assets, impairment of goodwill,
income from suppliers, revenue, expenditure and inventory.
Where components determined that reliance on controls
wasappropriate, procedures were designed and performed
totest the operating effectiveness of those controls at the
component level.
Our ability to adopt a controls reliance approach relied on the
evaluation of the results of testing the relevant controls in these
business processes throughout the year.
For other components, we either determined that a controls
reliance approach was not feasible or elected not to adopt it
after considering the components risk and control profile. This
did not impact our ability to conclude on these areas at either
the component or group level. We understand the steps that
the Group are taking in response to the updated UK Corporate
Governance Code and the requirements of Provision 29 as set
out in the Audit Committee Report on page 86.
7.3. Our consideration of climate-related risks
As part of our audit, we made enquiries of management to
understand the process they have adopted to assess the
potential impact of climate change on the financial statements.
Climate change is included in the Group’s principal risks (as set
out on page 64). The Group currently considers climate to have
limited impact over their three-year planning horizon (as stated
on page 64 and note 3 to the financial statements) but has
assessed that, without effective mitigation and adaptation,
climate change solutions could have longer-term negative
consequences for the group’s strategy and trading operations.
Our procedures have also included the following:
— assessing management’s risk assessment associated
withclimate change;
— assessing whether the risks identified by the group
arecomplete and consistent with our understanding
ofthegroup;
— evaluating whether the impact of climate has been
appropriately considered in the group’s cash flow forecasts
used for the group’s store-based asset impairment
assessment, goodwill impairment assessment and going
concern assessment;
— involving an Environmental, Social and Governance (“ESG”)
specialist to assist in evaluating whether appropriate
disclosures have been made in the financial statements with
reference to the Task Force on Climate-Related Financial
Disclosures (“TCFD”) requirements and climate related
disclosures in the notes to the financial statements;
— evaluated the appropriateness of the climate related
disclosures included in note 3 to the financial statements;
and
— reading the disclosures in the strategic report on pages 30
to 46 to consider whether they are materially consistent
with the financial statements and our knowledge obtained
in the audit.
131Kingfisher 2024/25 Annual Report and Accounts
7.4. Working with other auditors
We worked closely with the Deloitte component auditors to
involve them in our planning procedures and also to maintain
oversight throughout the audit process. We communicated our
requirements of the component auditors regularly throughout
the year and issued referral instructions formalising our
requirements of the component teams. We held a group-wide
team meeting to discuss the planned audit approach and the
risks within each component.
A senior member of the group audit team maintained regular
contact with the component audit teams and discussed
significant audit matters arising from the performance of local
audit procedures. Periodic meetings with group and component
management were held throughout the year to build on the
understanding of the significant audit matters within components
to inform our group audit approach.
The main components of the group subject to audit of the entire
financial information are its retail businesses in the UK, France
and Poland. As such, there was a high level of communication
between these teams to ensure an appropriate level of group
audit team involvement in the component audit work. Further,
senior members of the group audit team (including the group
engagement partner) completed in-person visits to the
component audit teams and engaged with the component
audit teams regarding matters affecting their audit, as well
as engagement and dialog with local management teams.
For each of these components, a senior member of the
group audit team reviewed the component working papers,
including key planning and reporting documents, the procedures
performed to address group significant risks and the procedures
performed to respond to other areas of focus and local
significant risks, in order to satisfy ourselves that we had
obtained sufficient appropriate audit evidence in response
tothe identified risks.
The group engagement partner and other senior members of
the group audit team attended the audit close meeting of each
component subject to an audit of the entire financial information.
In performing the procedures detailed above, the group audit
team reviewed, considered, and challenged the key matters
relevant to our conclusion in relation to the group audit and
assessed the impact on our group audit.
8. Other information
The other information comprises the information included
intheannual report other than the financial statements
andourauditor’s report thereon. The directors are responsible
for the other information contained within the annual report.
Our opinion on the financial statements does not cover the other
information and, except to the extent otherwise explicitly stated
in our report, we do not express any form of assurance
conclusion thereon.
Our responsibility is to read the other information and, in
doing so, consider whether the other information is materially
inconsistent with the financial statements, or our knowledge
obtained in the course of the audit, or otherwise appears
tobematerially misstated.
If we identify such material inconsistencies or apparent material
misstatements, we are required to determine whether this gives
rise to a material misstatement in the financial statements
themselves. If, based on the work we have performed, we
conclude that there is a material misstatement of this other
information, we are required to report that fact.
We have nothing to report in this regard.
9. Responsibilities of directors
As explained more fully in the directors’ responsibilities
statement, the directors are responsible for the preparation
ofthe financial statements and for being satisfied that they give
a true and fair view, and for such internal control as the directors
determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether
due to fraud or error.
In preparing the financial statements, the directors are
responsible for assessing the group’s and the parent company’s
ability to continue as a going concern, disclosing as applicable,
matters related to going concern and using the going concern
basis of accounting unless the directors either intend to
liquidate the group or the parent company or to cease
operations, orhave no realistic alternative but to do so.
10. Auditor’s responsibilities for the audit of the
financial statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs (UK) will always
detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users
taken onthe basis of these financial statements.
A further description of our responsibilities for the audit
ofthefinancial statements is located on the FRC’s website at:
www.frc.org.uk/auditorsresponsibilities. This description forms
part of our auditor’s report.
11. Extent to which the audit was considered capable
of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance
with laws and regulations. We design procedures in line with
ourresponsibilities, outlined above, to detect material
misstatements in respect of irregularities, including fraud.
Theextent to which our procedures are capable of
detecting irregularities, including fraud is detailed below.
Independent auditors’ report continued
Other Information
132 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
11.1. Identifying and assessing potential risks related
toirregularities
In identifying and assessing risks of material misstatement in
respect of irregularities, including fraud and non-compliance
withlaws and regulations, we considered the following:
— the nature of the industry and sector, control environment
and business performance including the design of the
group’s remuneration policies, key drivers for directors’
remuneration, bonus levels and performance targets;
— results of our enquiries of management, internal audit,
thedirectors and the audit committee about their own
identification and assessment of the risks of irregularities,
including those that are specific to the group’s
industry sector;
— any matters we identified having obtained and reviewed
thegroup’s documentation of their policies and procedures
relating to:
— identifying, evaluating and complying with laws and
regulations and whether they were aware of any
instances of non-compliance;
— detecting and responding to the risks of fraud and
whether they have knowledge of any actual, suspected
or alleged fraud;
— the internal controls established to mitigate risks of
fraud ornon-compliance with laws and regulations; and
— the matters discussed among the audit engagement team
including significant component audit teams and relevant
internal specialists, including tax, valuations, financial
instruments, pensions, ESG and IT specialists regarding
howand where fraud might occur in the financial statements
and any potential indicators of fraud.
As a result of these procedures, we considered the
opportunities and incentives that may exist within the
organisation for fraud and identified the greatest potential for
fraud in the following areas: impairment of store-based assets
(B&Q UK and France) and goodwill (Castorama France), and the
accuracy of supplier income. In common with all audits under
ISAs (UK), we are also required to perform specific procedures
to respond to the risk of management override of controls.
We also obtained an understanding of the legal and regulatory
frameworks that the group operates in, focusing on provisions
ofthose laws and regulations that had a direct effect on the
determination of material amounts and disclosures in the
financial statements. The key laws and regulations we
considered in this context included the UK Companies Act,
Listing Rules, pensions legislation, and UK and overseas
taxlegislation.
In addition, we considered provisions of other laws and
regulations that do not have a direct effect on the financial
statements but compliance with which may be fundamental
tothe group’s ability to operate or to avoid a material penalty.
These included UK General Data Protection Regulations and
Energy and Carbon regulations.
11.2.Audit response to risks identified
As a result of performing the above, we identified impairment
ofstore-based assets (B&Q UK and France) and goodwill
(Castorama France) and the accuracy of supplier income as key
audit matters related to the potential risk of fraud. The key audit
matters section of our report explains the matters in more detail
and also describes the specific procedures we performed in
response to those key audit matters.
In addition to the above, our procedures to respond to risks
identified included the following:
— reviewing the financial statement disclosures and testing
to supporting documentation to assess compliance with
provisions of relevant laws and regulations described
as having a direct effect on the financial statements;
— enquiring of management, the audit committee, and
in-house legal counsel concerning actual and potential
litigation and claims;
— performing analytical procedures to identify any unusual or
unexpected relationships that may indicate risks of material
misstatement due to fraud;
— reading minutes of meetings of those charged with
governance, reviewing internal audit reports and reviewing
correspondence with HMRC and other tax authorities;
— in addressing the risk of fraud through management
override of controls, testing the appropriateness of journal
entries and other adjustments; assessing whether the
judgements made in making accounting estimates are
indicative of a potential bias; and
— evaluating the business rationale of any significant
transactions that are unusual or outside the normal
course of business.
We also communicated relevant identified laws and regulations
and potential fraud risks to all engagement team members
including internal specialists and component audit teams, and
remained alert to any indications of fraud or non-compliance
with laws and regulations throughout the audit.
Report on other legal and regulatory
requirements
12. Opinions on other matters prescribed
bytheCompanies Act 2006
In our opinion the part of the directors’ remuneration report
to be audited has been properly prepared in accordance with
the Companies Act 2006.
In our opinion, based on the work undertaken in the course
ofthe audit:
— the information given in the strategic report and the
directors’ report for the financial year for which the
financial statements are prepared is consistent with
thefinancial statements; and
— the strategic report and the directors’ report
havebeenprepared in accordance with applicable
legalrequirements.
In the light of the knowledge and understanding of the group
and the parent company and their environment obtained in
the course of the audit, we have not identified any material
misstatements in the strategic report or the directors’ report.
133Kingfisher 2024/25 Annual Report and Accounts
13. Corporate Governance Statement
The Listing Rules require us to review the directors’ statement in
relation to going concern, longer-term viability and that part of
the Corporate Governance Statement relating to the group’s
compliance with the provisions of the UK Corporate
Governance Code specified for our review.
Based on the work undertaken as part of our audit,
wehaveconcluded that each of the following elements
oftheCorporate Governance Statement is materially
consistent with the financial statements and our knowledge
obtained during the audit:
— the directors’ statement with regards to the
appropriateness of adopting the going concern basis
ofaccounting and any material uncertainties identified
set out on page 68;
— the directors’ explanation as to its assessment of the
group’s prospects, the period this assessment covers
and why the period is appropriate set out on pages 66
and 67;
— the directors’ statement on fair, balanced and
understandable set out on page 123;
— the board’s confirmation that it has carried out a robust
assessment of the emerging and principal risks set out
on pages 60 to 65;
— the section of the annual report that describes the
review of effectiveness of risk management and internal
control systems set out on pages 86 and 87; and
— the section describing the work of the audit committee
set out on pages 83 to 87.
14. Matters on which we are required to report
byexception
14.1. Adequacy of explanations received and
accountingrecords
Under the Companies Act 2006 we are required to report
toyouif, in our opinion:
— we have not received all the information and explanations
we require for our audit; or
— adequate accounting records have not been kept by
the parent company, or returns adequate for our audit have
not been received from branches not visited by us; or
— the parent company financial statements are not in
agreement with the accounting records and returns.
We have nothing to report in respect of these matters.
14.2. Directors’ remuneration
Under the Companies Act 2006, we are also required to report
ifin our opinion certain disclosures of directors’ remuneration
have not been made or the part of the directors’ remuneration
report to be audited is not in agreement with the accounting
records and returns.
We have nothing to report in respect of these matters.
15. Other matters which we are required to address
15.1. Auditor tenure
Following the recommendation of the audit committee, we were
appointed by the Board of Directors on 5 October 2009 to audit
the financial statements for the year ending 31 January 2010 and
subsequent financial periods. The period of total uninterrupted
engagement including previous renewals and reappointments
ofthe firm is 16 years, covering the years ending 31 January 2010
to 31 January 2025.
15.2. Consistency of the audit report with the additional
report to the audit committee
Our audit opinion is consistent with the additional report
totheaudit committee we are required to provide in
accordance with ISAs (UK).
16. Use of our report
This report is made solely to the company’s members, as a body,
in accordance with Chapter 3 of Part 16 of the Companies Act
2006. Our audit work has been undertaken so that we might
state to the company’s members those matters we are required
to state to them in an auditor’s report and for no other purpose.
To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the company and
the company’s members as a body, for our audit work, for
this report, or for the opinions we have formed.
As required by the Financial Conduct Authority (FCA) Disclosure
Guidance and Transparency Rule (DTR) 4.1.15R – DTR 4.1.18R,
these financial statements will form part of the Electronic
Format Annual Financial Report filed on the National Storage
Mechanism of the FCA in accordance with DTR 4.1.15R – DTR
4.1.18R. This auditor’s report provides no assurance over whether
the Electronic Format Annual Financial Report has been
prepared in compliance with DTR 4.1.15R – DTR 4.1.18R.
David Griffin FCA (Senior statutory auditor)
For and on behalf of Deloitte LLP
Statutory Auditor
London, United Kingdom
24 March 2025
Independent auditors’ report continued
Other Information
134 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Consolidated income statement
Year ended 31 January 2025
2024/25
2023/24
Before adjusting Adjusting items Before adjusting Adjusting items
£ millions Notes items (note 6) Total items (note 6) Total
Sales
4
12,784
–
12,784
12,980
–
12,980
Cost of sales
(8,021)
–
(8,021)
(8,204)
–
(8,204)
Gross profit
4,763
–
4,763
4,776
–
4,776
Selling and distribution expenses
(3,122)
(99)
(3,221)
(3,143)
(87)
(3,230)
Administrative expenses
(1,018)
(97)
(1,115)
(982)
(8)
(990)
Other income
20
–
20
23
2
25
Other expenses
–
(25)
(25)
–
–
–
Share of post-tax results of joint
ventures and associates
18
(15)
–
(15)
(1)
–
(1)
Operating profit
5
628
(221)
407
673
(93)
580
Finance costs
(132)
–
(132)
(133)
–
(133)
Finance income
32
–
32
28
–
28
Net finance costs
7
(100)
–
(100)
(105)
–
(105)
Profit before taxation
8
528
(221)
307
568
(93)
475
Income tax expense
10
(147)
25
(122)
(153)
23
(130)
Profit for the year
381
(196)
185
415
(70)
345
Earnings per share
11
Basic
10.1p
18.2p
Diluted
9.9p
18.0p
Adjusted basic
20.7p
21.9p
Adjusted diluted
20.4p
21.6p
The proposed dividend for the year ended 31 January 2025, subject to approval by shareholders at the Annual General Meeting,
is 12.40p per share, comprising an interim dividend of 3.80p in respect of the six months ended 31 July 2024, and a final dividend
of 8.60p.
135Kingfisher 2024/25 Annual Report and Accounts
Consolidated statement of comprehensive income
Year ended 31 January 2025
£ millions
Notes
2024/25
2023/24
Profit for the year
185
345
Remeasurements of post-employment benefits
28
(11)
(42)
Inventory cash flow hedges – fair value gains/(losses)
22
(32)
Tax on items that will not be reclassified
28
28
Total items that will not be reclassified subsequently to profit or loss
39
(46)
Currency translation differences
Group
(25)
(3)
Joint ventures and associates
6
(1)
Transferred to income statement
–
(2)
Inventory cash flow hedges – losses transferred to income statement
1
12
Tax on items that may be reclassified
–
(2)
Total items that may be reclassified subsequently to profit or loss
(18)
4
Other comprehensive income/(expense) for the year
21
(42)
Total comprehensive income for the year
206
303
Other Information
136 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Consolidated statement of changes in equity
Year ended 31 January 2025
2024/25
Capital Other
Share capital Share Own shares Retained redemption reserves
£ millions
Notes
(note 29) premium held earnings reserve
(note 30)
Total equity
At 1 February 2024
294
2,228
(31)
3,741
82
290
6,604
Profit for the year
–
–
–
185
–
–
185
Other comprehensive income/(expense) for the
year
–
–
–
23
–
(2)
21
Total comprehensive income/(expense) for
the year
–
–
–
208
–
(2)
206
Inventory cash flow hedges – losses transferred
to inventories
–
–
–
–
–
15
15
Share-based compensation
31
–
–
–
20
–
–
20
New shares issued under share schemes
–
–
–
2
–
–
2
Own shares issued under share schemes
–
–
23
(23)
–
–
–
Purchase of own shares for cancellation
29
(12)
–
–
(251)
12
–
(251)
Purchase of own shares for ESOP trust
–
–
(26)
–
–
–
(26)
Dividends
12
–
–
–
(228)
–
–
(228)
Tax on equity items
–
–
–
6
–
(4)
2
At 31 January 2025
282
2,228
(34)
3,475
94
299
6,344
2023/24
Capital Other
Share capital Share Own shares Retained redemption reserves
£ millions
Notes
(note 29) premium held earnings reserve (note 30) Total equity
At 1 February 2023
305
2,228
(22)
3 ,796
71
285
6,663
Profit for the year
–
–
–
345
–
–
345
Other comprehensive expense for the year
–
–
–
(20)
–
(22)
(42)
Total comprehensive income/(expense) for
the year
–
–
–
325
–
(22)
303
Inventory cash flow hedges – losses transferred
to inventories
–
–
–
–
–
33
3 3
Share-based compensation
31
–
–
–
22
–
–
22
New shares issued under share schemes
–
–
–
4
–
–
4
Own shares issued under share schemes
–
–
15
(15)
–
–
–
Purchase of own shares for cancellation
29
(11)
–
–
(153)
11
–
(153)
Purchase of own shares for ESOP trust
–
–
(24)
–
–
–
(24)
Dividends
12
–
–
–
(237)
–
–
(237)
Tax on equity items
–
–
–
(1)
–
(6)
(7)
At 31 January 2024
294
2,228
(31)
3,741
82
290
6,604
137Kingfisher 2024/25 Annual Report and Accounts
Consolidated balance sheet
At 31 January 2025
£ millions
Notes
2024/25
2023/24
Non-current assets
Goodwill
13
2,312
2,398
Other intangible assets
14
312
368
Property, plant and equipment
15
3,105
3,206
Investment property
16
34
27
Right-of-use assets
17
1,771
1,881
Investments in joint ventures and associates
18
29
19
Post-employment benefits
28
202
212
Deferred tax assets
26
7
10
Other tax authority asset
36
–
68
Derivative assets
24
2
–
Other receivables
20
11
15
7,785
8,204
Current assets
Inventories
19
2,719
2,914
Trade and other receivables
20
276
344
Derivative assets
24
22
2
Current tax assets
78
73
Other tax authority asset
36
69
–
Cash and cash equivalents
21
336
360
Assets held for sale
34
158
3
3,658
3,696
Total assets
11,443
11,900
Current liabilities
Trade and other payables
22
(2,355)
(2,445)
Borrowings
23
(108)
(7)
Lease liabilities
33
(345)
(366)
Derivative liabilities
24
(5)
(23)
Current tax liabilities
(6)
(12)
Provisions
27
(1 6)
(9)
Liabilities directly associated with assets held for sale
34
(92)
–
(2,927)
(2,862)
Non-current liabilities
Other payables
22
(2)
(3)
Borrowings
23
(1)
(102)
Lease liabilities
33
(1,866)
(2,001)
Derivative liabilities
24
–
(1)
Deferred tax liabilities
26
(1 93)
(207)
Provisions
27
(9)
(7)
Post-employment benefits
28
(101)
(113)
(2,172)
(2,434)
Total liabilities
(5,099)
(5,296)
Net assets
5
6,344
6,604
Equity
Share capital
29
282
294
Share premium
2,228
2,228
Own shares held in ESOP trust
(34)
(31)
Retained earnings
3,475
3,741
Capital redemption reserve
94
82
Other reserves
30
299
290
Total equity
6,344
6,604
The financial statements were approved by the Board of Directors on 24 March 2025 and signed on its behalf by:
Thierry Garnier Bhavesh Mistry
Chief Executive Officer Chief Financial Officer
Other Information
138 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Consolidated cash flow statement
Year ended 31 January 2025
£ millions
Notes
2024/25
2023/24
Operating activities
Cash generated by operations
32
1,411
1,438
Income tax paid
(109)
(117)
Net cash flows from operating activities
1,302
1,321
Investing activities
Purchase of property, plant and equipment, and intangible assets
(317)
(363)
Proceeds from disposals of property, plant and equipment, intangible assets, and assets held
for sale
2
2
Purchase of businesses
–
(3)
Joint venture capital contributions
(19)
–
Disposal of subsidiaries and associates, net of cash disposed
(3)
9
Interest received
23
16
Interest element of sublease rental receipts
1
1
Principal element of sublease rental receipts
2
3
Advance payments on right-of-use assets
(5)
(4)
Net cash flows used in investing activities
(316)
(339)
Financing activities
Interest paid
(8)
(7)
Interest element of lease rental payments
(1 23)
(126)
Principal element of lease rental payments
(387)
(348)
Arrangement fees paid
(2)
–
New shares issued under share schemes
2
4
Purchase of own shares for cancellation
(225)
(160)
Purchase of own shares for ESOP trust
(26)
(24)
Ordinary dividends paid to equity shareholders of the Company
12
(228)
(237)
Net cash flows used in financing activities
(997)
(898)
Net (decrease)/increase in cash and cash equivalents and bank overdrafts
(11)
84
Cash and cash equivalents and bank overdrafts at beginning of year
353
270
Exchange differences
(6)
(1)
Cash and cash equivalents and bank overdrafts at end of year
33
336
353
Cash and cash equivalents and bank overdrafts at the end of the year include £9m of cash included within assets held for sale on the
balance sheet (2023/24: £nil).
139Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements
1 General information
Kingfisher plc (‘the Company’), its subsidiaries, joint ventures and
associates (together ‘the Group’) supply home improvement
products and services through a network of retail stores and
other channels, located mainly in the United Kingdom and
continental Europe. The nature of the Group’s operations and its
principal activities are set out in the Strategic Report on pages 2
to 68.
The Company is incorporated in England and Wales, United
Kingdom, and is listed on the London Stock Exchange. The
address of its registered office is 1 Paddington Square, London,
W2 1GG. A full list of related undertakings of the Company and
their registered offices is given in note 14 of the Company’s
separate financial statements.
These consolidated financial statements have been approved
for issue by the Board of Directors on 24 March 2025.
2 Material accounting policies
The material accounting policies applied in the preparation of
these consolidated financial statements are set out below.
These policies have been consistently applied to the years
presented.
a. Basis of preparation
The consolidated financial statements of the Company, its
subsidiaries, joint ventures and associates are made up to
31 January, except as disclosed in note 18 of the consolidated
financial statements. The current financial year is the year ended
31 January 2025 (‘the year’ or ‘2024/25’). The comparative
financial year is the year ended 31 January 2024 (‘the prior year’
or ‘2023/24’). The consolidated income statement and related
notes represent results from continuing operations, there being
no discontinued operations in the years presented.
The consolidated financial statements have been prepared in
accordance with international accounting standards in
conformity with the requirements of the Companies Act 2006
and International Financial Reporting Standards (IFRS Standards)
as issued by the IASB.
The consolidated financial statements have been prepared
under the historical cost convention, as modified by the use of
valuations for certain financial instruments, share-based
payments and post-employment benefits. A summary of the
Group’s material accounting policies is set out below.
The preparation of financial statements in accordance with
IFRS requires the use of certain accounting estimates and
assumptions. It also requires management to exercise its
judgement in the process of applying the Group’s accounting
policies. The areas involving critical accounting judgements and
key estimation uncertainties, which are significant to the
consolidated financial statements, are outlined in note 3.
Going concern
Based on the Group’s liquidity position and cash flow projections,
including a forward-looking remote downside scenario, the
Directors have a reasonable expectation that the Company and
the Group have adequate resources to continue in operational
existence for the foreseeable future, a period of at least 12
months from the date on which the financial statements are
authorised for issue, and they continue to adopt the going
concern basis of accounting in preparing the consolidated
financial statements for the year ended 31 January 2025.
The Group’s business activities, together with the factors likely
to affect its future development, performance and position, are
set out in the Strategic Report on pages 2 to 68. The financial
position of the Group, its cash flows, liquidity position and
borrowing facilities are described in the financial review on
pages 48 to 54. The principal risks and viability statement of the
Group are set out on pages 59 to 66. In addition, note 25 includes
the Group’s financial risk management objectives and exposures
to liquidity and other financial risks. The Directors have
considered these areas alongside the principal risks and how
they may impact the going concern assessment.
As of 31 January 2025, Kingfisher had access to £986m of
liquidity, comprising cash and cash equivalents (net of bank
overdrafts and including cash held for sale) of £336m and access
to an undrawn Revolving Credit Facility (RCF) of £650m (which
expires at the end of May 2027). The ratio of net debt to
Adjusted EBITDA was 1.6 as of 31 January 2025.
In considering whether the Group’s financial statements can
be prepared on a going concern basis, the Directors have
reviewed the Group’s business activities together with factors
likely to affect its performance, financial position and access to
liquidity (including consideration of financial covenants and
credit ratings).
The terms of the RCF require that the ratio of Group operating
profit (excluding adjusting items) to net interest payable
(excluding interest on lease liabilities) must be no less than 3:1 for
the preceding 12 months as at the half- and full-year ends. As of
31 January 2025, Kingfisher was compliant with this requirement.
In forming their outlook on the future financial performance, the
Directors considered the risk of higher business volatility and
the potential negative impact of the general economic
environment on household and trade spend.
The Directors’ review also included consideration of a remote
scenario that models the impact of a significant demand or
supply shock preventing the Group from realising a large part of
its sales over the period of a month, followed by subdued
demand for the remainder of the year. The total loss of sales in
this scenario is c.£1.5bn (12% over the impacted period). The
scenario assumes the impact of lost sales is partially offset by a
limited set of mitigating actions on variable and discretionary
costs, capital expenditure and the suspension of capital returns
to shareholders. Even under this remote scenario, which
requires drawing on the RCF for a few months, the Group retains
headroom on its credit facilities.
Other Information
140 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Given current trading and expectations for the business, the
Directors believe that this scenario reflects a remote outcome
for the Group. Should a more extreme scenario occur than
currently modelled by the Directors under this remote scenario,
the Group would need to implement additional operational or
financial measures.
Changes to accounting policies as a result of new
standards issued and effective
The following new or amended accounting standards are in issue
and effective for the current reporting period:
— Amendments to IAS 1 – Classification of Liabilities as
Current or Non-current and Non-current liabilities with
Covenants
— Amendments to IFRS 16 – Lease Liability in a Sale and
Leaseback
— Amendments to IAS 7 and IFRS 7 – Supplier Finance
Arrangements
As a result of implementing the amendments to IAS 7 and IFRS 7,
the Group has provided additional disclosures about its supplier
finance arrangements. The Group has applied transitional relief
available under IAS 7 and has not provided comparative
information in the first year of adoption. Refer to note 22.
The other amended accounting standards did not have a
material impact on the consolidated financial statements.
Standards issued but not yet effective
At the date of the approval of these financial statements,
the following amendments to standards which have not been
applied in these financial statements were also in issue, but not
yet effective:
— Amendments to IAS 21 – Lack of Exchangeability (effective
from 1 January 2025)
— Amendments to IFRS 9 and IFRS 7 – Classification and
Measurement of Financial Instruments, and Contracts
Referencing Nature-dependent Electricity (effective from 1
January 2026)
— Annual Improvements to IFRS Accounting Standards –
Volume 11 (effective from 1 January 2026)
— IFRS 18 – Presentation and Disclosure in Financial
Statements (effective from 1 January 2027)
— IFRS 19 – Subsidiaries without Public Accountability:
Disclosures (effective from 1 January 2027)
IFRS 18 – Presentation and Disclosures in the Financial
Statements, effective from 1 January 2027, which has not been
applied in these financial statements, was issued by the IASB in
April 2024 and is expected to be endorsed by the UK
Endorsement Board in due course. The adoption of IFRS 18 is
expected to have a material impact on the presentation of the
Group’s income statement and notes to the accounts. The
Group is currently assessing the implications of the adoption of
this new standard.
The other new amendments to standards are not expected to
have a material impact on the consolidated financial statements.
Risks and uncertainties
The principal risks and uncertainties to which the Group is
exposed are set out in the Strategic Report on pages 2 to 68.
Use of non-GAAP measures
In the reporting of financial information, the Group uses certain
measures that are not required under IFRS - the generally
accepted accounting principles (‘GAAP’) under which the Group
reports. Kingfisher believes that retail profit, adjusted pre-tax
profit, adjusted effective tax rate, and adjusted earnings per
share provide additional useful information on performance and
trends to shareholders. These and other non-GAAP measures
(also known as ‘Alternative Performance Measures’), such as net
debt, are used by Kingfisher for internal performance analysis
and incentive compensation arrangements for employees. The
terms ‘retail profit’, ‘adjusting items’, ‘adjusted’, ‘adjusted
effective tax rate’, ‘net cash flow’ and ‘net debt’ are not defined
terms under IFRS and may therefore not be comparable with
similarly titled measures reported by other companies. They are
not intended to be a substitute for, or superior to, GAAP
measures.
Retail profit is defined as continuing profit before tax before
central costs, the Group’s share of interest and tax of joint
ventures and associates, adjusting items and net finance costs.
Central costs principally comprise the costs of the Group’s head
office before adjusting items. This is the Group's operating profit
measure used to report the performance of the Group’s
retail businesses.
Adjusting items, which are presented separately within their
relevant income statement category, include items which by
virtue of their size and/or nature, do not reflect the Group’s
ongoing trading performance. Adjusting items may include, but
are not limited to:
— non-trading items included in operating profit such as
profits and losses on the disposal, closure, exit or
impairment of subsidiaries, joint ventures, associates and
investments which do not form part of the Group’s ongoing
trading activities;
— the costs of significant restructuring and incremental
acquisition integration costs;
— profits and losses on the disposal/exit of properties
1
,
impairments of goodwill and significant impairments (or
impairment reversals) of other non-current assets, which
the Group identifies as adjusting due to volatility which can
arise year-on-year based on future forecasts and
assumptions;
— prior year tax items (including the impact of changes in tax
rates on deferred tax), significant one-off tax settlements
and provision charges/releases and the tax effects of other
adjusting items;
— financing fair value remeasurements i.e. changes in the fair
value of financing derivatives, excluding interest accruals,
offset by fair value adjustments to the carrying amount
of borrowings and other hedged items under fair value
(or non-designated) hedge relationships. Financing
derivatives are those that relate to hedged items of a
financing nature.
1. The Group does not routinely dispose of or exit properties (i.e. other than
on expiry of a lease) and does not consider property disposals to form part
of its trading operations as a result. This includes profits or losses on
disposals of freehold properties, or lease gains or losses arising from the
exit of leased properties before the lease expiry date.
141Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
2 Material accounting policies continued
The term ‘adjusted’ refers to the relevant measure being
reported for continuing operations excluding adjusting items.
The adjusted effective tax rate is calculated as continuing
income tax expense excluding prior year tax items (including the
impact of changes in tax rates on deferred tax), significant one-
off tax settlements and provision charges/releases and the tax
effects of other adjusting items, divided by continuing profit
before taxation excluding adjusting items. Prior year tax items
represent income statement tax relating to underlying items
originally arising in prior years, including the impact of changes in
tax rates on deferred tax. The exclusion of items relating to prior
years, and those not in the ordinary course of business, helps
provide a better indication of the Group’s ongoing rate of tax.
Net debt comprises lease liabilities, borrowings and financing
derivatives (excluding accrued interest) less cash and cash
equivalents and short-term deposits, including such balances
classified as held for sale.
Refer to the glossary for definitions of all of the Group’s
Alternative Performance Measures, including further information
on why they are used and details of where reconciliations to
statutory measures can be found where applicable.
Segmental analysis
Determination of operating segments
Kingfisher has historically determined its operating segments as
defined under ‘IFRS 8 – Operating segments’ to be the
geographical areas in which the Group operates. This
determination has been based on the information reported
internally to the Board of Directors and Group Executive, who
are collectively considered to be the ‘Chief Operating Decision
Maker’ (‘CODM’), to assess business performance and make
decisions about resource allocation.
Following the dissolution of the ‘France’-level management
structure during the year, the change in internal reporting
structures, and in consideration of the increase in retail banner
autonomy under the Group’s ‘Powered by Kingfisher’ strategy,
the Group has reassessed its determination of operating
segments against the IFRS 8 criteria.
Following this change in the management structure and resulting
reassessment, the Group has concluded that each retail banner
now represents a separate operating segment. In arriving at this
conclusion, the following has been taken into consideration:
—
Revenues and expenses are generally earned and incurred
at the retail banner level (i.e. despite some overlap in
product ranges and customer base);
—
Following the changes in internal structure, only limited
shared in-country activities remain for the UK & Ireland and
France retail banners, particularly following the dissolution
of the ‘France’-level management structure during the year;
and
—
Based on the revised internal structure, discrete financial
information and operating results are available at a retail
banner level and are reviewed by the CODM when assessing
performance and making overarching resource allocation
decisions under the Group’s ‘Powered by Kingfisher’
strategy.
The retail banner level determination of operating segments
primarily impacts the Groups’ banners located in the UK & Ireland
(i.e. B&Q UK & Ireland and Screwfix UK & Ireland) and France (i.e.
Castorama France and Brico Dépôt France) where the operating
segments have historically been identified at a geographical
level. This change does not have any impact on the existing
determination of operating segments for the Group’s retail
banners outside of the UK & Ireland and France as there is only
one retail banner within each of the geographical locations.
Determination of reportable segments
In consideration of the change in determination of operating
segments, the Group has reassessed its reportable segments in
line with the requirements of IFRS 8. Historically, the Group’s
reportable segments consisted of the UK & Ireland and France
as these individually met the quantitative requirements set out in
IFRS. All other segments, which did not meet the individual
quantitative criteria to be defined as a reportable segment, were
combined and presented as ‘Other International’. In previous
periods, this combination included the results of Castorama
Poland, for which the individual segment results were separately
disclosed to provide additional information to users.
Following this reassessment and in consideration of the
quantitative results of the segments in the current period, it was
considered appropriate that the reportable segments should be
UK & Ireland, France and Poland. Within both the UK & Ireland and
France reportable segments, operating segments determined at
the retail banner level have been aggregated to form reportable
segments (i.e. B&Q and Screwfix in the UK & Ireland and
Castorama and Brico Dépôt in France). In arriving at this
conclusion, the following has been taken into consideration:
—
Operating segments within the same geographical area
share similar economic characteristics in terms of sales
metrics, long-term average gross margins, levels of capital
investment and operating cash flows;
—
Operating segments within the same geographical area
share similar risks, including market and competition risk,
supply chain risk, political and regulatory risk, legal and
compliance risk and currency risk; and
—
The nature of products and services provided by each
operating segment within the same geographical area are
similar, with similar customer bases and target markets.
Upon aggregation, it was identified that the UK & Ireland and
France segments meet the quantitative criteria to be defined as
reportable segments. Screwfix France has not been aggregated
as part of the France reportable segment due to its level of
maturity relative to Castorama France and Brico Dépôt France.
As the Castorama Poland operating segment meets the IFRS 8
quantitative threshold to be a reportable segment it has been
separated from the ‘Other International’ combined segment and
presented as a separate reportable segment. Other operating
segments, which do not individually meet the definition of a
reportable segment, have been combined and are presented as
‘Other International’.
Other Information
142 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Goodwill impairment testing implications
For goodwill impairment testing, goodwill cannot be assessed for
impairment at a level higher than an operating segment and
which represents the lowest level within the entity at which
goodwill is monitored for internal management purposes. Under
the previous determination of operating segments by
geographical area, goodwill was tested for impairment at the UK
& Ireland, France and Poland levels respectively, representing
the lowest level at which the goodwill was monitored for internal
management purposes.
As a result of the change to a retail banner level determination of
operating segments, the goodwill balances previously allocated
to the UK & Ireland and France group of CGUs have been
reallocated to the retail banners within those geographical areas
(i.e. B&Q and Screwfix in the UK & Ireland and Castorama and
Brico Dépôt in France), and tested for impairment at that level.
Within Poland there is only one retail banner and so no
reallocation is required. In line with ‘IAS 36 – Impairment of
Assets’, where undergoing reporting structure changes, goodwill
should be reallocated using a ‘relative value’ approach. The
Group has determined that each retail banner’s relative value-in-
use represents the most appropriate methodology to determine
‘relative value’. The relative value-in-use of each of the retail
banners has been calculated utilising the long-term plan cash
flows as at 30 November 2024, as well as discount rates and
growth rates.
The result of the relative value-in-use goodwill reallocation is set
out below:
Relative Goodwill
UK & Ireland value-in-use % allocation £m
B&Q UK & Ireland
58
1,036
Screwfix UK & Ireland
42
760
Total
100
1,796
France
Castorama France
43
225
Brico Dépôt France
57
296
Total
100
521
Following the above reallocation of goodwill balances to retail
banners, an impairment charge of £84m was recorded in relation
to the goodwill associated with Castorama France. In addition,
impairment of Castorama France goodwill has been added as
a new ‘Key source of estimation uncertainty’ given the risk of
further material impairment over the next 12 months. This detail
is set out in note 3.
Refer to note 13 for further details of goodwill impairment
testing and the impairment charge recorded in relation to
Castorama France.
b. Basis of consolidation
The consolidated financial statements incorporate the financial
statements of the Company, its subsidiaries, joint ventures and
associates.
(i) Subsidiaries
Subsidiaries are all entities (including structured entities) over
which the Group has control. The Group controls an entity when
the Group is exposed to, or has rights to, variable returns from
its involvement with the entity and has the ability to affect those
returns through its power over the entity.
Subsidiaries acquired are recorded under the acquisition
method of accounting and their results included from the date
of acquisition.
The results of subsidiaries which have been disposed are
included up to the effective date of disposal.
The consideration transferred for the acquisition of a subsidiary
is the fair values of the assets transferred, the liabilities incurred
and the equity interests issued by the Group. The consideration
transferred includes the fair value of any asset or liability
resulting from a contingent consideration arrangement.
Acquisition-related costs are expensed as incurred. Identifiable
assets acquired and liabilities and contingent liabilities assumed
in a business combination are measured initially at their fair
values at the acquisition date. On an acquisition-by-acquisition
basis, the Group recognises any non-controlling interest in the
acquiree either at fair value or at the non-controlling interest’s
proportionate share of the acquiree’s net assets. Subsequent to
acquisition, the carrying amount of non-controlling interests is
the amount of those interests at initial recognition plus the
non-controlling interests’ share of subsequent changes in equity.
Total comprehensive income is attributed to non-controlling
interests even if this results in the non-controlling interests
having a deficit balance.
The excess of the consideration transferred, the amount of any
non-controlling interests in the acquiree and the acquisition-
date fair value of any previous equity interests in the acquiree
over the fair value of the identifiable net assets acquired is
recorded as goodwill. If this is less than the fair value of the net
assets of the subsidiary acquired in the case of a bargain
purchase, the difference is recognised directly in the income
statement.
Intercompany transactions, balances and unrealised gains on
transactions between Group companies are eliminated on
consolidation. Unrealised losses are also eliminated unless the
transaction provides evidence of an impairment of the asset
transferred. Accounting policies of acquired subsidiaries have
been changed where necessary to ensure consistency with the
policies adopted by the Group.
(ii) Joint ventures and associates
Joint ventures are entities over which the Group has joint
control. Joint control is the contractually agreed sharing of
control of an arrangement, which exists only when decisions
about the relevant activities require the unanimous consent of
the parties sharing control. The equity method is used to
account for the Group’s investments in joint ventures.
An investment in an associate or a joint venture is accounted for
using the equity method from the date on which the investee
becomes an associate or a joint venture. On acquisition of the
investment in an associate or a joint venture, any excess of the
cost of the investment over the group's share of the net fair
value of the identifiable assets and liabilities of the investee is
recognised as goodwill, which is included within the carrying
amount of the investment. Any excess of the group's share of
the net fair value of the identifiable assets and liabilities over the
cost of the investment, after reassessment, is recognised
immediately in profit or loss in the period in which the investment
is acquired.
143Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
2 Material accounting policies continued
Associates are entities over which the Group has the ability to
exercise significant influence but not control or joint control,
generally accompanied by a shareholding of between 20% and
50% of the voting rights. The equity method is used to account
for the Group’s investments in associates.
The Group’s share of post-acquisition profits or losses is
recognised in the income statement within operating profit, and
its share of post-acquisition movements in other
comprehensive income is recognised in other comprehensive
income. The cumulative post-acquisition movements are
adjusted against the carrying amount of the investment. When
the Group’s share of losses equals or exceeds its interest,
including any other long-term receivables, the Group does not
recognise any further losses, unless it has incurred obligations or
made payments on behalf of the joint venture or associate.
Unrealised gains on transactions between the Group and its joint
ventures and associates are eliminated to the extent of the
Group’s interest. Unrealised losses are also eliminated unless the
transaction provides evidence of an impairment of the asset
transferred.
Accounting policies of joint ventures and associates have been
changed where necessary to ensure consistency with the
policies adopted by the Group.
Investments in joint ventures and associates are reviewed for
impairment where there is an indication of impairment.
The equity method of accounting is discontinued from the date
an investment ceases to be a joint venture or associate, that is
the date on which the Group ceases to have joint control or
significant influence over the investee or on the date it is
classified as held for sale.
In March 2022, the three-year cumulative inflation in Turkey
exceeded 100% and as a result, hyperinflationary accounting
was applied for the years ended 31 January 2024 and 31 January
2025 in respect of the Group’s joint venture in Turkey.
The Group’s consolidated financial statements include the equity
accounted results and financial position of its Turkish joint
venture restated to the current purchasing power as at the
year-end date, with hyperinflationary gains and losses in respect
of monetary items being reported in operating profit. Equity
adjustments in relation to application of IAS 29 are recorded
within exchange differences on consolidation. Prior year
comparatives are not restated. Both the joint venture
investment and results are translated at the rate of exchange at
the balance sheet date.
c. Foreign currencies
(i) Presentation and functional currencies
The consolidated financial statements are presented in Sterling,
which is the Group’s presentation currency. Items included in the
financial statements of each of the Group’s entities are
measured using the currency of the primary economic
environment in which the entity operates (i.e. its functional
currency).
(ii) Transactions and balances
Transactions denominated in foreign currencies are translated
into the functional currency at the exchange rates prevailing on
the date of the transaction or, for practical reasons, at average
monthly rates where exchange rates do not fluctuate
significantly.
Monetary assets and liabilities denominated in foreign currencies
are translated into Sterling at the rates of exchange at the
balance sheet date. Exchange differences on monetary items
are recorded in the income statement. Exceptions to this are
where the monetary items form part of the net investment in a
foreign operation or are designated and effective net
investment hedges. Such exchange differences are initially
deferred in equity.
(iii) Group companies
The balance sheets of overseas subsidiaries are expressed in
Sterling at the rates of exchange at the balance sheet date.
Profits and losses of overseas subsidiaries are expressed in
Sterling at average exchange rates for the period. Exchange
differences arising on the retranslation of foreign operations,
including joint ventures and associates, are recognised in a
separate component of equity.
On consolidation, exchange differences arising from the
retranslation of the net investment in foreign entities, and of
borrowings, lease liabilities and other currency instruments
designated as hedges of such investments, are taken to equity.
When a foreign operation is sold, such exchange differences
recorded since 1 February 2004 (being the date of transition to
IFRS) are recognised in the income statement as part of the gain
or loss on disposal.
Goodwill and fair value adjustments arising on the acquisition of a
foreign entity are treated as assets and liabilities of the foreign
entity and translated at the rates of exchange at the balance
sheet date. Goodwill arising prior to 1 February 2004 is
denominated in Sterling, and not subsequently retranslated.
(iv) Principal rates of exchange against Sterling
2024/25
2023/24
Average rate
Year end rate
Average rate
Year end rate
Euro
1.18
1.20
1.15
1.17
US Dollar
1.28
1.24
1.25
1.27
Polish Zloty
5.08
5.04
5.20
5.08
Romanian Leu
5.89
5.95
5.71
5.83
Turkish Lira
1
44.38
44.38
38.64
38.64
1.
The Turkish Lira average exchange rates represent the closing rates for
the year, due to the application of hyperinflation accounting in Turkey.
d. Revenue recognition
Sales represent the supply of home improvement products and
services, including commission from sales of third-party
products through Kingfisher websites (i.e. ‘marketplace’
arrangements). Sales exclude transactions made between
companies within the Group, Value Added Tax, other sales-
related taxes and are net of returns, trade and staff discounts.
Revenue is recognised when control of the goods or services
are transferred to the customer at an amount that reflects the
consideration to which the Group expects to be entitled in
exchange for those goods or services.
Other Information
144 Kingfisher 2024/25 Annual Report and Accounts
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Revenue from in-store product sales is recognised when the
customer takes possession of the products (i.e. on payment).
Revenue from online ‘click & collect’ product sales is recognised
on collection of the products. Where customers have a right to
return purchased goods in exchange for a refund, a liability for
returns is recognised based on historic trends and offset against
revenue in the period in which the sale was made. An asset (with
a corresponding adjustment to cost of sales) is also recognised
for goods expected to be returned from customers. Where
award credits such as vouchers or loyalty points are provided as
part of the sales transaction, the amount allocated to the credits
is deferred and recognised when the credits are redeemed and
the Group fulfils its obligations to supply the awards. Liabilities
for returns and award credits are measured using the expected
value method.
Revenue from sales of delivered products is recognised on
delivery. Supply of delivered products is judged to be one single
performance obligation.
Service sales typically comprise kitchen and bathroom
installations. Revenue from these services is recognised on
completion of the relevant installation. Where consideration is
received from customers before the installation service has
been completed, this amount is recorded as deferred income
within trade and other payables and is only recognised as
revenue once the installation service has been completed.
Commission revenue is earned from the sale of third-party
products through Kingfisher websites. This is referred to as a
marketplace arrangement. Kingfisher acts as an agent in such
arrangements and recognises the net commission receivable
within sales, generally when an order is placed.
Sales from delivered products, installation services and
marketplace arrangements represent only a small proportion of
the Group’s total sales as the majority relates to in-store and
online ‘click & collect’ purchases of products.
Other income includes external rental income and gains on
disposal of assets. Rental income from operating leases is
recognised on a straight-line basis over the term of the
relevant lease.
e. Rebates
Rebates received from suppliers mainly comprise volume-
related rebates on the purchase of inventories. Contractual
volume-related rebates are accrued as units are purchased
based on the percentage rebate applicable to forecast total
purchases over the rebate period, where it is probable the
rebates will be received and the amounts can be estimated
reliably. Discretionary rebates are not anticipated and are only
recognised once earned. Rebates relating to inventories
purchased but still held at the balance sheet date are deducted
from the carrying value so that the cost of inventories is
recorded net of applicable rebates. Such rebates are credited
to the cost of sales line in the income statement when the goods
are sold.
Other rebates received, such as those related to advertising and
marketing, including retail media income from suppliers, are
credited to cost of sales in the income statement when the
relevant conditions have been fulfilled.
f. Dividends
Interim dividends are recognised when they are paid to the
Company’s shareholders. Final dividends are recognised when
they are approved by the Company’s shareholders.
g. Intangible assets
(i) Goodwill
Goodwill represents the future economic benefits arising from
assets acquired in a business combination that are not individually
identified and separately recognised. Such benefits include
future synergies expected from the combination and intangible
assets not meeting the criteria for separate recognition.
Goodwill is carried at cost less accumulated impairment losses.
Goodwill is not amortised and is tested annually for impairment
at the retail banner level, representing the lowest level at which it
is monitored for internal management purposes. See note 2(k)
for the accounting policy on impairment, including goodwill.
(ii) Computer software
Where software is not an integral part of a related item of
computer hardware, it is classified as an intangible asset. Costs
that are directly associated with the acquisition or production of
identifiable software products controlled by the Group, which
are expected to generate economic benefits exceeding costs
beyond one year, are recognised as intangible assets.
Capitalised costs include those of software licences and
development, including costs of employees, consultants and an
appropriate portion of relevant overheads.
Costs related to the configuration and customisation in cloud
computing arrangements, where they do not give the Group
power to control the future economic benefits and to restrict
access of others to those benefits, are not capitalised as they
do not meet the definition of intangible assets under IAS 38; the
Group does not control the computer software being
configured or customised and the configuration or
customisation activities do not create a resource controlled by
the Group that is separate from the software. Such costs are
expensed as incurred. Configuration and customisation in cloud
computing arrangements are only capitalised where a separate
asset is created and capitalisable under IAS 38.
Costs associated with identifying, sourcing, evaluating or
maintaining computer software are recognised as an expense
as incurred.
Software under development is held at cost less any provisions
for impairment, with impairment reviews being performed
annually, or when there is an indication of impairment.
Amortisation commences when the software assets are
available for use and are over their estimated useful lives of two
to 10 years.
Intangible assets are derecognised on disposal or when no
future economic benefits are expected from its use or disposal.
Notes to the consolidated financial statements continued
2 Material accounting policies continued
Associates are entities over which the Group has the ability to
exercise significant influence but not control or joint control,
generally accompanied by a shareholding of between 20% and
50% of the voting rights. The equity method is used to account
for the Group’s investments in associates.
The Group’s share of post-acquisition profits or losses is
recognised in the income statement within operating profit, and
its share of post-acquisition movements in other
comprehensive income is recognised in other comprehensive
income. The cumulative post-acquisition movements are
adjusted against the carrying amount of the investment. When
the Group’s share of losses equals or exceeds its interest,
including any other long-term receivables, the Group does not
recognise any further losses, unless it has incurred obligations or
made payments on behalf of the joint venture or associate.
Unrealised gains on transactions between the Group and its joint
ventures and associates are eliminated to the extent of the
Group’s interest. Unrealised losses are also eliminated unless the
transaction provides evidence of an impairment of the asset
transferred.
Accounting policies of joint ventures and associates have been
changed where necessary to ensure consistency with the
policies adopted by the Group.
Investments in joint ventures and associates are reviewed for
impairment where there is an indication of impairment.
The equity method of accounting is discontinued from the date
an investment ceases to be a joint venture or associate, that is
the date on which the Group ceases to have joint control or
significant influence over the investee or on the date it is
classified as held for sale.
In March 2022, the three-year cumulative inflation in Turkey
exceeded 100% and as a result, hyperinflationary accounting
was applied for the years ended 31 January 2024 and 31 January
2025 in respect of the Group’s joint venture in Turkey.
The Group’s consolidated financial statements include the equity
accounted results and financial position of its Turkish joint
venture restated to the current purchasing power as at the
year-end date, with hyperinflationary gains and losses in respect
of monetary items being reported in operating profit. Equity
adjustments in relation to application of IAS 29 are recorded
within exchange differences on consolidation. Prior year
comparatives are not restated. Both the joint venture
investment and results are translated at the rate of exchange at
the balance sheet date.
c. Foreign currencies
(i) Presentation and functional currencies
The consolidated financial statements are presented in Sterling,
which is the Group’s presentation currency. Items included in the
financial statements of each of the Group’s entities are
measured using the currency of the primary economic
environment in which the entity operates (i.e. its functional
currency).
(ii) Transactions and balances
Transactions denominated in foreign currencies are translated
into the functional currency at the exchange rates prevailing on
the date of the transaction or, for practical reasons, at average
monthly rates where exchange rates do not fluctuate
significantly.
Monetary assets and liabilities denominated in foreign currencies
are translated into Sterling at the rates of exchange at the
balance sheet date. Exchange differences on monetary items
are recorded in the income statement. Exceptions to this are
where the monetary items form part of the net investment in a
foreign operation or are designated and effective net
investment hedges. Such exchange differences are initially
deferred in equity.
(iii) Group companies
The balance sheets of overseas subsidiaries are expressed in
Sterling at the rates of exchange at the balance sheet date.
Profits and losses of overseas subsidiaries are expressed in
Sterling at average exchange rates for the period. Exchange
differences arising on the retranslation of foreign operations,
including joint ventures and associates, are recognised in a
separate component of equity.
On consolidation, exchange differences arising from the
retranslation of the net investment in foreign entities, and of
borrowings, lease liabilities and other currency instruments
designated as hedges of such investments, are taken to equity.
When a foreign operation is sold, such exchange differences
recorded since 1 February 2004 (being the date of transition to
IFRS) are recognised in the income statement as part of the gain
or loss on disposal.
Goodwill and fair value adjustments arising on the acquisition of a
foreign entity are treated as assets and liabilities of the foreign
entity and translated at the rates of exchange at the balance
sheet date. Goodwill arising prior to 1 February 2004 is
denominated in Sterling, and not subsequently retranslated.
(iv) Principal rates of exchange against Sterling
2024/25 2023/24
Average rate Year end rate Average rate Year end rate
Euro 1.18 1.20 1.15 1.17
US Dollar 1.28 1.24 1.25 1.27
Polish Zloty 5.08 5.04 5.20 5.08
Romanian Leu 5.89 5.95 5.71 5.83
Turkish Lira
1
44.38 44.38 38.64 38.64
1.
The Turkish Lira average exchange rates represent the closing rates for
the year, due to the application of hyperinflation accounting in Turkey.
d. Revenue recognition
Sales represent the supply of home improvement products and
services, including commission from sales of third-party
products through Kingfisher websites (i.e. ‘marketplace’
arrangements). Sales exclude transactions made between
companies within the Group, Value Added Tax, other sales-
related taxes and are net of returns, trade and staff discounts.
Revenue is recognised when control of the goods or services
are transferred to the customer at an amount that reflects the
consideration to which the Group expects to be entitled in
exchange for those goods or services.
145Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
2 Material accounting policies continued
h. Property, plant and equipment
(i) Cost
Property, plant and equipment held for use in the business are
carried at cost less accumulated depreciation and any
provisions for impairment.
Properties that were held at 1 February 2004 are carried at
deemed cost, being the fair value of land and buildings as at the
transition date to IFRS. All property acquired after 1 February
2004 is carried at cost less accumulated depreciation.
(ii) Depreciation
Depreciation is provided to reflect a straight-line reduction from
cost to estimated residual value over the estimated useful life of
the asset as follows:
Freehold land
— not depreciated
Freehold buildings
— over remaining useful life
Leasehold improvements
— over remaining lease
period
Fixtures and fittings
— between 4 and 20 years
Computers and electronic equipment
— between 3 and 5 years
Motor cars & commercial vehicles
— between 3 and 10 years
(iii) Disposal
The gain or loss arising on the disposal or retirement of an asset
is determined as the difference between the net sales proceeds
and the carrying amount of the asset and is recognised in the
income statement. Sales of land and buildings are accounted for
when there is an unconditional exchange of contracts.
(iv) Subsequent costs
Subsequent costs are included in the related asset’s carrying
amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated
with the item will flow to the Group and the cost of the item can
be measured reliably.
See note 2(k) for the accounting policy on impairment, including
property, plant and equipment.
All other repairs and maintenance are charged to the income
statement in the period in which they are incurred.
i. Leased assets
(i) Lessee accounting
The Group assesses whether a contract is or contains a lease at
inception of the contract. Typically, lease contracts relate to
properties such as stores and distribution centres, and
equipment leases such as mechanical handling equipment and
vehicles. The Group recognises a right-of-use asset and a
corresponding lease liability with respect to all lease
arrangements in which it is the lessee, except for short-term
leases (defined as leases with a lease term of 12 months or less)
and leases of low value assets. For these leases, the group
recognises the lease payments as an operating expense on a
straight-line basis over the term of the lease unless another
systematic basis is more representative of the time pattern in
which economic benefits from the leased assets are consumed.
The liability is initially measured as the present value of the lease
payments not yet paid at the commencement date, discounted
at an appropriate discount rate. Where the implicit rate in the
lease is not readily determinable, an incremental borrowing rate
is calculated and applied. The calculation methodology is based
upon applying a financing spread to a risk-free rate, with the
resulting rate including the effect of the creditworthiness of the
operating company in which the lease is contracted, as well as
the underlying term, currency and start date of the lease
agreement.
Lease payments used in the measurement of the lease liability
principally comprise fixed lease payments (subject to
indexation/rent reviews) less any incentives. The lease liability is
subsequently measured using an effective interest method
whereby the carrying amount of the lease liability is measured
on an amortised cost basis, and the interest expense is allocated
over the lease term. The lease term comprises the non-
cancellable lease term, in addition to break or extension options
when these additional periods are reasonably certain to arise at
the commencement of a lease. Typically, it is not considered to
be reasonably certain at the commencement of a lease that
such extension options will be exercised or that break options
will not be exercised, and these additional periods are only
recognised after they have been approved by the relevant
investment committee.
The Group remeasures the lease liability and makes a
corresponding adjustment to the related right-of-use asset
whenever an event occurs that changes the term or payment
profile of a lease, such as the renewal of an existing lease, the
exercise of lease term options, market rent reviews and
indexation. A lease liability which is denominated in a currency
that is not the functional currency of the relevant Group entity
(e.g. a Euro-denominated lease in Castorama Poland) is
translated into that entity’s functional currency with foreign
exchange gains and losses recorded in the income statement,
unless the lease liability is designated as a net investment hedge
with foreign exchange gains and losses recorded in other
comprehensive income.
The right-of-use assets are initially measured at the amount
equal to the lease liability, adjusted by any upfront lease
payments or incentives and any initial direct costs incurred.
Subsequently, the assets are measured at cost less
accumulated depreciation and impairment losses. Right-of-use
assets are depreciated on a straight-line basis over the
remaining lease term, which is deemed to be the useful life. See
note 2(k) for the accounting policy on impairment, including
Right-of-use assets.
(ii) Lessor accounting
Leases for which the Group is a lessor are classified as finance
or operating leases. Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee,
the contract is classified as a finance lease. All other leases are
classified as operating leases.
When the Group is an intermediate lessor, it accounts for the
head lease and the sub-lease as two separate contracts. The
sub-lease is classified as a finance or operating lease by
reference to the right-of-use asset arising from the head lease.
Rental income from operating leases is recognised on a straight-
line basis over the term of the relevant lease.
Other Information
146 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Amounts due from lessees under finance leases are recognised
as sublease receivables within trade and other receivables at the
amount of the Group’s net investment in the leases. Finance
lease income is allocated to accounting periods so as to reflect
a constant periodic rate of return on the Group’s net investment
outstanding in respect of the leases.
j. Investment property
Investment property is property held by the Group to earn rental
income or for capital appreciation. Investment properties are
carried at cost less depreciation and provision for impairment.
Depreciation is provided on a consistent basis with that applied
to property, plant and equipment.
k. Impairment
At each reporting date an assessment is performed as to
whether there are any indicators that property, plant and
equipment, right-of-use assets, and other intangible assets,
including the Group’s store-based assets, may be impaired or
whether there is any indication that an impairment loss
recognised in a previous period either no longer exists or has
decreased. Goodwill is reviewed annually for impairment or
earlier if there is an indication of impairment.
For store-based assets, should such indicators of impairment or
impairment reversal exist, the assets’ recoverable amounts are
subsequently estimated. Each individual store is determined to
be a cash generating unit. The recoverable amount is assessed
by reference to the net present value of expected future pre-
tax cash flows (‘value-in-use’) of the relevant cash generating
unit or fair value less costs to sell if higher. A vacant possession
valuation basis is used to approximate the fair value less costs to
sell. Cash flows used for the purposes of determining value-in-
use are based on the Group’s most recent Board-approved
plans. The Group has fully attributed to stores all e-ecommerce
revenues (and related costs) relating to sales where stores are
involved in the fulfilment of those sales. This includes online
click-and-collect sales and online sales fulfilled by store-to-
home delivery. Other e-commerce related cash flows, including
direct-to-home delivery and marketplace sales (where there is
no store involvement) are not allocated to stores for impairment
testing purposes. The pre-tax discount rates are derived from
the Group’s weighted average cost of capital, taking into
account the cost of equity and debt, to which specific market-
related premium adjustments are made for each country. Long-
term growth rates are derived from external long-term inflation
forecasts for the territories in which the businesses operate.
Where a store’s recoverable amount is less than its carrying
value, it is impaired down to its recoverable amount. Where a
store has been previously impaired and its recoverable amount
is higher than its carrying value, the previous impairment is
reversed to an amount in which its carrying amount cannot
exceed its recoverable amount, with reversals capped at the
amount of previous accumulated impairments, adjusted for
depreciation.
For the purposes of goodwill impairment testing, goodwill has
been allocated to each retail banner Group of CGUs,
representing the lowest level at which goodwill is monitored for
internal management purposes. The recoverable amount is
assessed by reference to the present value of expected future
cash flows (‘value-in-use’). Cash flows used for the purposes of
determining value-in-use are based on the Group’s most recent
Board-approved plans. The pre-tax discount rates are derived
from the Group’s weighted average cost of capital, taking into
account the cost of equity and debt, to which specific market-
related premium adjustments are made for each country. Long-
term growth rates are derived from external long-term inflation
forecasts for the territories in which the businesses operate.
Where the recoverable amount is less than the net assets of the
Group of CGUs and related goodwill, an impairment loss is
immediately recognised in the income statement. An impairment
loss is allocated first to reduce the carrying amount of any
goodwill and then to the other assets in the Group of CGUs on a
pro-rata basis, on the basis of the carrying amount of each asset
in the group of CGUs. A goodwill impairment cannot be reversed.
Profits or losses on the disposal of an entity include the carrying
amount of goodwill relating to the entity sold.
Other intangibles are reviewed annually for impairment, or earlier
where there is an indication of impairment.
l. Inventories
Inventories are carried at the lower of cost and net realisable
value, on a weighted average cost basis.
Trade discounts and rebates received are deducted in
determining the cost of purchase of inventories. Cost includes
appropriate attributable overheads and direct expenditure
incurred in the normal course of business in bringing goods to
their present location and condition. Costs of inventories include
the transfer from equity of any gains or losses on qualifying cash
flow hedges relating to purchases.
Net realisable value represents the estimated selling price in the
ordinary course of business less the estimated costs necessary
to make the sale. Write downs to net realisable value are made
for slow moving, display, damaged or obsolete items and other
events or conditions resulting in expected selling prices being
lower than cost. The carrying value of inventories reflects known
and expected losses of product in the ordinary course of
business.
m. Employee benefits
(i) Post-employment benefits
The Group operates various defined benefit and defined
contribution pension schemes for its employees, some of which
are required by local legislation. A defined benefit scheme is a
pension scheme which defines an amount of pension benefit
which an employee will receive on retirement. A defined
contribution scheme is a pension scheme under which the
Group usually pays fixed contributions into a separate entity. In
all cases other than some of the legally required schemes, a
separate fund is being accumulated to meet the accruing
liabilities. The assets of each of these funds are either held under
trusts or managed by insurance companies and are entirely
separate from the Group’s assets.
Notes to the consolidated financial statements continued
2 Material accounting policies continued
h. Property, plant and equipment
(i) Cost
Property, plant and equipment held for use in the business are
carried at cost less accumulated depreciation and any
provisions for impairment.
Properties that were held at 1 February 2004 are carried at
deemed cost, being the fair value of land and buildings as at the
transition date to IFRS. All property acquired after 1 February
2004 is carried at cost less accumulated depreciation.
(ii) Depreciation
Depreciation is provided to reflect a straight-line reduction from
cost to estimated residual value over the estimated useful life of
the asset as follows:
Freehold land — not depreciated
Freehold buildings — over remaining useful life
Leasehold improvements — over remaining lease
period
Fixtures and fittings — between 4 and 20 years
Computers and electronic equipment — between 3 and 5 years
Motor cars & commercial vehicles — between 3 and 10 years
(iii) Disposal
The gain or loss arising on the disposal or retirement of an asset
is determined as the difference between the net sales proceeds
and the carrying amount of the asset and is recognised in the
income statement. Sales of land and buildings are accounted for
when there is an unconditional exchange of contracts.
(iv) Subsequent costs
Subsequent costs are included in the related asset’s carrying
amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefits associated
with the item will flow to the Group and the cost of the item can
be measured reliably.
See note 2(k) for the accounting policy on impairment, including
property, plant and equipment.
All other repairs and maintenance are charged to the income
statement in the period in which they are incurred.
i. Leased assets
(i) Lessee accounting
The Group assesses whether a contract is or contains a lease at
inception of the contract. Typically, lease contracts relate to
properties such as stores and distribution centres, and
equipment leases such as mechanical handling equipment and
vehicles. The Group recognises a right-of-use asset and a
corresponding lease liability with respect to all lease
arrangements in which it is the lessee, except for short-term
leases (defined as leases with a lease term of 12 months or less)
and leases of low value assets. For these leases, the group
recognises the lease payments as an operating expense on a
straight-line basis over the term of the lease unless another
systematic basis is more representative of the time pattern in
which economic benefits from the leased assets are consumed.
The liability is initially measured as the present value of the lease
payments not yet paid at the commencement date, discounted
at an appropriate discount rate. Where the implicit rate in the
lease is not readily determinable, an incremental borrowing rate
is calculated and applied. The calculation methodology is based
upon applying a financing spread to a risk-free rate, with the
resulting rate including the effect of the creditworthiness of the
operating company in which the lease is contracted, as well as
the underlying term, currency and start date of the lease
agreement.
Lease payments used in the measurement of the lease liability
principally comprise fixed lease payments (subject to
indexation/rent reviews) less any incentives. The lease liability is
subsequently measured using an effective interest method
whereby the carrying amount of the lease liability is measured
on an amortised cost basis, and the interest expense is allocated
over the lease term. The lease term comprises the non-
cancellable lease term, in addition to break or extension options
when these additional periods are reasonably certain to arise at
the commencement of a lease. Typically, it is not considered to
be reasonably certain at the commencement of a lease that
such extension options will be exercised or that break options
will not be exercised, and these additional periods are only
recognised after they have been approved by the relevant
investment committee.
The Group remeasures the lease liability and makes a
corresponding adjustment to the related right-of-use asset
whenever an event occurs that changes the term or payment
profile of a lease, such as the renewal of an existing lease, the
exercise of lease term options, market rent reviews and
indexation. A lease liability which is denominated in a currency
that is not the functional currency of the relevant Group entity
(e.g. a Euro-denominated lease in Castorama Poland) is
translated into that entity’s functional currency with foreign
exchange gains and losses recorded in the income statement,
unless the lease liability is designated as a net investment hedge
with foreign exchange gains and losses recorded in other
comprehensive income.
The right-of-use assets are initially measured at the amount
equal to the lease liability, adjusted by any upfront lease
payments or incentives and any initial direct costs incurred.
Subsequently, the assets are measured at cost less
accumulated depreciation and impairment losses. Right-of-use
assets are depreciated on a straight-line basis over the
remaining lease term, which is deemed to be the useful life. See
note 2(k) for the accounting policy on impairment, including
Right-of-use assets.
(ii) Lessor accounting
Leases for which the Group is a lessor are classified as finance
or operating leases. Whenever the terms of the lease transfer
substantially all the risks and rewards of ownership to the lessee,
the contract is classified as a finance lease. All other leases are
classified as operating leases.
When the Group is an intermediate lessor, it accounts for the
head lease and the sub-lease as two separate contracts. The
sub-lease is classified as a finance or operating lease by
reference to the right-of-use asset arising from the head lease.
Rental income from operating leases is recognised on a straight-
line basis over the term of the relevant lease.
147Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
2 Material accounting policies continued
The asset or liability recognised in the balance sheet in respect of
defined benefit pension schemes is the fair value of scheme assets
less the present value of the defined benefit obligation at the balance
sheet date. Any surplus resulting from this calculation is limited to the
present value of any economic benefits available in the form of
refunds from the plans or reductions in future contributions to the
plans. The defined benefit obligation is calculated annually by
independent actuaries using the projected unit credit method. The
present value of the defined benefit obligation is determined by
discounting the estimated future cash outflows using interest rates of
high-quality corporate bonds which are denominated in the currency
in which the benefits will be paid and which have terms to maturity
approximating to the terms of the related pension liability.
Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are credited or
charged to the statement of comprehensive income as they arise.
For defined contribution schemes, the Group has no further
payment obligations once the contributions have been paid.
The contributions are recognised as an employee benefit
expense when they are due.
(ii) Share-based compensation
The Group operates several equity-settled, share-based
compensation schemes. The fair value of the employee services
received in exchange for the grant of options or deferred
shares is recognised as an expense and is calculated using
Black-Scholes and stochastic models. The total amount to be
expensed over the vesting period is determined by reference to
the fair value of the options or deferred shares granted,
excluding the impact of any non-market vesting conditions. The
value of the charge is adjusted to reflect expected and actual
levels of options vesting due to non-market vesting conditions.
iii) Employee Share Ownership Plan trust (‘ESOP trust’)
The ESOP trust is a separately administered discretionary trust.
Liabilities of the ESOP trust are guaranteed by the Parent
Company, and the assets of the ESOP trust mainly comprise
shares in the Parent Company.
Own shares held by the ESOP trust are deducted from equity
and the shares are held at historical cost until they are sold.
The assets, liabilities, income and costs of the ESOP trust
are included in both the Company’s and the consolidated
financial statements.
n. Taxation
The income tax expense represents the sum of the tax currently
payable and deferred tax. The tax currently payable is based on
taxable profit for the year.
The Group is subject to income taxes in numerous jurisdictions
and there are many transactions for which the ultimate tax
determination is uncertain during the ordinary course of
business. For uncertain tax positions, on the basis that tax
authorities have full knowledge of the relevant information, it is
determined whether it is probable that, in aggregate, an outflow
of economic resources will occur following investigation. The
potential impact of the relevant tax authority’s examination of
the uncertain tax positions is measured to make the best
estimate of the amount of the tax benefit that may be lost, for
which liabilities are then recorded. Where the final outcome of
these matters is different from the amounts which were initially
recorded, such differences will impact the income tax and
deferred tax liabilities in the period in which such determination
is made. These adjustments in respect of prior years are
recorded in the income statement, or directly in equity, as
appropriate. Receivables for amounts previously paid to tax
authorities are recognised to the extent that it is considered
probable that the Group will recover these amounts.
Taxable profit differs from profit before taxation as reported in
the income statement because it excludes items of income or
expense which are taxable or deductible in other years or which
are never taxable or deductible.
Deferred tax is the tax expected to be payable or recoverable
on differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax
bases used in the computation of taxable profit and is accounted
for using the balance sheet liability method.
Deferred tax liabilities are generally recognised for all taxable
temporary differences. Deferred tax assets are recognised to
the extent that it is probable that taxable profits will be available
against which deductible temporary differences or unused tax
losses can be utilised. Deferred tax liabilities are not recognised
if the temporary difference arises from the initial recognition of
goodwill in a business combination. Deferred tax assets and
liabilities are not recognised if the temporary difference arises
from the initial recognition (other than in a business combination)
of other assets and liabilities in a transaction which affects
neither the taxable profit nor the accounting profit. Deferred tax
liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries, joint ventures and
associates, except where the Group is able to control the
reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all
or part of the asset to be recovered.
Current and deferred tax are calculated using tax rates which
have been enacted or substantively enacted by the balance
sheet date and are expected to apply in the period when the
liability is settled or the asset is realised.
Current and deferred tax are charged or credited to the income
statement, except when they relate to items charged or
credited to other comprehensive income or directly to equity, in
which case the current or deferred tax is also recognised in
other comprehensive income or directly in equity.
Deferred tax assets and liabilities are offset against each other
when there is a legally enforceable right to offset current tax
assets against current tax liabilities and when they relate to
income taxes levied by the same tax jurisdiction and when the
Group intends to settle its current tax assets and liabilities on a
net basis.
Operating levies, such as certain revenue, property and payroll-
based taxes, are not treated as income tax and are included
within operating profit. The timing of recognition of a liability to
pay an operating levy is determined by the event identified
under the relevant legislation that triggers the obligation to pay
the levy.
Other Information
148 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
o. Provisions and contingent liabilities
Provisions are recognised when the Group has a present legal or
constructive obligation as a result of past events, it is more likely
than not that an outflow of resources will be required to settle
the obligation, and the amount can be reliably estimated.
A provision is recorded if the unavoidable costs of meeting the
obligations under a contract exceed the economic benefits
expected to be received under it. The unavoidable costs reflect
the net cost of exiting the contract.
If the effect of the time value of money is material, provisions
are determined by discounting the expected future cash flows
at a pre-tax rate which reflects current market assessments of
the time value of money and, where appropriate, the risks
specific to the liability. Credits or charges arising from changes
in the rate used to discount the provisions are recognised within
net finance costs.
Contingent liabilities are possible obligations arising from past
events, whose existence will only be confirmed by future
uncertain events that are not wholly within the Group’s control,
or present obligations where it is not probable that an outflow of
resources will be required or the amount of the obligation
cannot be reliably measured. If the outflow of economic
resources is not considered remote, contingent liabilities are
disclosed but not recognised in the financial statements.
p. Financial instruments
Financial assets and financial liabilities are recognised on the
Group’s balance sheet when the Group becomes a party to the
contractual provisions of the financial instrument. Financial
assets are derecognised when the contractual rights to the cash
flows from the financial asset expire or the Group has
substantially transferred the risks and rewards of ownership.
Financial liabilities (or a part of a financial liability) are
derecognised when the obligation specified in the contract is
discharged, cancelled, expires or is substantially modified.
Financial assets and liabilities are offset only when the Group has
a currently enforceable legal right to set-off the respective
recognised amounts and intends either to settle on a net basis,
or to realise the asset and settle the liability simultaneously.
(i) Cash and cash equivalents
Cash and cash equivalents include cash in hand, uncleared credit
card receipts, deposits held on call with banks and other short-
term highly liquid investments that are readily convertible to a
known amount of cash, are subject to insignificant risk of
changes in value and which have original maturities of three
months or less. Cash equivalents are held for the purpose of
meeting short-term cash commitments rather than for
investment or other purposes. For cash flow statement
reporting purposes, the Group considers bank overdrafts as part
of cash and cash equivalents because they are repayable on
demand and form part of the Group’s cash management.
(ii) Borrowings
Interest bearing borrowings are recorded at fair value (which is
typically equivalent to the proceeds received) net of direct issue
costs and subsequently measured at amortised cost. Where
borrowings are in designated and effective fair value hedge
relationships, adjustments are made to their carrying amounts to
reflect the hedged risks. Finance charges, including premiums
payable on settlement or redemption and direct issue costs, are
amortised to the income statement using the effective interest
method.
(iii) Trade receivables
Trade receivables are initially recognised at their transaction
price and are subsequently measured at amortised cost less any
allowance for expected credit losses. To measure the expected
credit losses, trade receivables are grouped based on the days
past due. Trade receivables are written off when there is no
reasonable expectation of recovery.
(iv) Trade payables
Trade payables are initially recognised at fair value and are
subsequently measured at amortised cost.
(v) Derivatives and hedge accounting
Derivatives are initially recorded at fair value on the date a
derivative contract is entered into and are subsequently carried
at fair value.
Derivatives embedded in other financial instruments or other
host contracts are treated as separate derivatives when their
risks and characteristics are not closely related to those of host
contracts, and the host contracts are not carried at fair value
with unrealised gains or losses reported in the income
statement.
Where hedge accounting is not applied, or to the extent to which
it is not effective, changes in the fair value of derivatives are
recognised in the income statement as they arise. Changes in
the fair value of derivatives transacted as hedges of operating
items and financing items are recognised in operating profit and
net finance costs respectively.
The accounting treatment of derivatives and other financial
instruments classified as hedges depends on their designation,
which occurs at the start of the hedge relationship. The Group
designates certain financial instruments as:
— a hedge of the fair value of an asset or liability or
unrecognised firm commitment (‘fair value hedge’);
— a hedge of a highly probable forecast transaction or firm
commitment if foreign currency risk is hedged (‘cash flow
hedge’); or
— a hedge of a net investment in a foreign operation (‘net
investment hedge’).
Fair value hedges
For an effective hedge of an exposure to changes in fair value,
the hedged item is adjusted for changes in fair value attributable
to the risk being hedged with the corresponding entry being
recorded in the income statement. Gains or losses from
remeasuring the corresponding hedging instrument are
recognised in the same line of the income statement.
Notes to the consolidated financial statements continued
2 Material accounting policies continued
The asset or liability recognised in the balance sheet in respect of
defined benefit pension schemes is the fair value of scheme assets
less the present value of the defined benefit obligation at the balance
sheet date. Any surplus resulting from this calculation is limited to the
present value of any economic benefits available in the form of
refunds from the plans or reductions in future contributions to the
plans. The defined benefit obligation is calculated annually by
independent actuaries using the projected unit credit method. The
present value of the defined benefit obligation is determined by
discounting the estimated future cash outflows using interest rates of
high-quality corporate bonds which are denominated in the currency
in which the benefits will be paid and which have terms to maturity
approximating to the terms of the related pension liability.
Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are credited or
charged to the statement of comprehensive income as they arise.
For defined contribution schemes, the Group has no further
payment obligations once the contributions have been paid.
The contributions are recognised as an employee benefit
expense when they are due.
(ii) Share-based compensation
The Group operates several equity-settled, share-based
compensation schemes. The fair value of the employee services
received in exchange for the grant of options or deferred
shares is recognised as an expense and is calculated using
Black-Scholes and stochastic models. The total amount to be
expensed over the vesting period is determined by reference to
the fair value of the options or deferred shares granted,
excluding the impact of any non-market vesting conditions. The
value of the charge is adjusted to reflect expected and actual
levels of options vesting due to non-market vesting conditions.
iii) Employee Share Ownership Plan trust (‘ESOP trust’)
The ESOP trust is a separately administered discretionary trust.
Liabilities of the ESOP trust are guaranteed by the Parent
Company, and the assets of the ESOP trust mainly comprise
shares in the Parent Company.
Own shares held by the ESOP trust are deducted from equity
and the shares are held at historical cost until they are sold.
The assets, liabilities, income and costs of the ESOP trust
are included in both the Company’s and the consolidated
financial statements.
n. Taxation
The income tax expense represents the sum of the tax currently
payable and deferred tax. The tax currently payable is based on
taxable profit for the year.
The Group is subject to income taxes in numerous jurisdictions
and there are many transactions for which the ultimate tax
determination is uncertain during the ordinary course of
business. For uncertain tax positions, on the basis that tax
authorities have full knowledge of the relevant information, it is
determined whether it is probable that, in aggregate, an outflow
of economic resources will occur following investigation. The
potential impact of the relevant tax authority’s examination of
the uncertain tax positions is measured to make the best
estimate of the amount of the tax benefit that may be lost, for
which liabilities are then recorded. Where the final outcome of
these matters is different from the amounts which were initially
recorded, such differences will impact the income tax and
deferred tax liabilities in the period in which such determination
is made. These adjustments in respect of prior years are
recorded in the income statement, or directly in equity, as
appropriate. Receivables for amounts previously paid to tax
authorities are recognised to the extent that it is considered
probable that the Group will recover these amounts.
Taxable profit differs from profit before taxation as reported in
the income statement because it excludes items of income or
expense which are taxable or deductible in other years or which
are never taxable or deductible.
Deferred tax is the tax expected to be payable or recoverable
on differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax
bases used in the computation of taxable profit and is accounted
for using the balance sheet liability method.
Deferred tax liabilities are generally recognised for all taxable
temporary differences. Deferred tax assets are recognised to
the extent that it is probable that taxable profits will be available
against which deductible temporary differences or unused tax
losses can be utilised. Deferred tax liabilities are not recognised
if the temporary difference arises from the initial recognition of
goodwill in a business combination. Deferred tax assets and
liabilities are not recognised if the temporary difference arises
from the initial recognition (other than in a business combination)
of other assets and liabilities in a transaction which affects
neither the taxable profit nor the accounting profit. Deferred tax
liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries, joint ventures and
associates, except where the Group is able to control the
reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all
or part of the asset to be recovered.
Current and deferred tax are calculated using tax rates which
have been enacted or substantively enacted by the balance
sheet date and are expected to apply in the period when the
liability is settled or the asset is realised.
Current and deferred tax are charged or credited to the income
statement, except when they relate to items charged or
credited to other comprehensive income or directly to equity, in
which case the current or deferred tax is also recognised in
other comprehensive income or directly in equity.
Deferred tax assets and liabilities are offset against each other
when there is a legally enforceable right to offset current tax
assets against current tax liabilities and when they relate to
income taxes levied by the same tax jurisdiction and when the
Group intends to settle its current tax assets and liabilities on a
net basis.
Operating levies, such as certain revenue, property and payroll-
based taxes, are not treated as income tax and are included
within operating profit. The timing of recognition of a liability to
pay an operating levy is determined by the event identified
under the relevant legislation that triggers the obligation to pay
the levy.
149Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
2 Material accounting policies continued
Cash flow hedges
Changes in the effective portion of the fair value of derivatives
that are designated as hedges of future cash flows are
recognised directly in other comprehensive income, with any
ineffective portion being recognised immediately in the income
statement where relevant. If the cash flow hedge of a firm
commitment or forecast transaction results in the recognition of
a non-financial asset or liability, then, at the time it is recognised,
the associated gains or losses on the derivative that had
previously been deferred in equity are included in the initial
measurement of the non-financial asset or liability. For all other
hedges, amounts deferred in equity are recognised in the
income statement in the same period in which the hedged item
affects net profit or loss.
Net investment hedges
Where the Group hedges net investments in foreign operations
through foreign currency borrowings or lease liabilities, the gains
or losses on retranslation are recognised in other
comprehensive income. If the Group uses derivatives as the
hedging instrument, the effective portion of the hedge is
recognised in other comprehensive income, with any ineffective
portion being recognised immediately in the income statement.
Gains and losses accumulated in equity are recycled through the
income statement on disposal of the foreign operation.
In order to qualify for hedge accounting, the Group documents
in advance the risk management objective and strategy for
undertaking the hedge and the relationship between the item
being hedged and the hedging instrument. The Group also
documents and demonstrates an assessment of the relationship
between the hedged item and the hedging instrument, which
shows that the hedge will be highly effective on an ongoing basis
and provides an analysis of the sources of hedge
ineffectiveness. The effectiveness testing is performed at half
year and year end or upon a significant change in circumstances
affecting the hedge effectiveness requirements.
Hedge accounting is discontinued when the hedging instrument
expires or is sold, terminated or exercised, or no longer qualifies
for hedge accounting. At that time, any cumulative gain or loss
on the hedging instrument is retained in equity until the highly
probable forecast transaction occurs. If a hedged transaction is
no longer expected to occur, the net cumulative gain or loss
deferred in equity is transferred to the income statement.
q. Assets and liabilities held for sale
Non-current assets and disposal groups are classified as held
for sale if their carrying amounts will be recovered through a
sale transaction rather than through continuing use. This
condition is regarded as met only when the sale is highly
probable and the asset or disposal group is available for
immediate sale in its present condition subject only to terms that
are usual and customary for sales of such assets.
Management must be committed to the sale, which should be
expected to qualify for recognition as a completed sale within
one year from the date of classification as held for sale.
Non-current assets and disposal groups classified as held for
sale are measured at the lower of carrying amount and fair value
less costs to sell. This excludes financial assets, deferred tax
assets and assets arising from employee benefits, which are
measured according to the relevant accounting policy.
Property, plant and equipment, right-of-use assets and
intangible assets are not depreciated once classified as held for
sale. The Group ceases to use the equity method of accounting
from the date on which an interest in a joint venture or an
interest in an associate becomes classified as held for sale.
r. Share repurchases
Shares purchased for cancellation are deducted from retained
earnings. The Group uses irrevocable closed period buyback
programmes. A liability to purchase shares is recognised at
inception of the programme with any subsequent reduction in
the obligation credited back to retained earnings at the end of
the programme. Share capital is reduced and credited to the
capital redemption reserve once shares are cancelled,
maintaining non-distributable reserves.
s. Reserves
The following describes the nature and purpose of each reserve
within equity:
(i) Share capital
The nominal value of proceeds received for shares issued.
(ii) Share premium
Proceeds received in excess of the nominal value of shares
issued, net of any transaction costs.
(iii) Own shares held
Shares held by The Employee Share Ownership Plan Trust.
(iv) Capital redemption reserve
Amounts transferred from share capital on repurchase of issued
shares which are subsequently cancelled.
(v) Other reserves, comprising:
—
Translation reserve – Gains or losses arising on retranslating
the net assets of overseas operations into the Group’s
presentation currency including gains or losses on net
investment hedges.
—
Cash flow hedge reserve – Cumulative gains and losses on
‘effective’ hedging instruments.
—
Other – Represents the premium on the issue of convertible
loan stock in 1993 and the merger reserve relating to the
acquisition of Darty in 1993.
(vi) Retained earnings
All other net gains and losses and transactions with owners that
are not recognised elsewhere.
Other Information
150 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
3 Critical accounting judgements and key sources
of estimation uncertainty
The preparation of consolidated financial statements under IFRS
requires the Group to make estimates and assumptions that
affect the application of policies and reported amounts.
Estimates and judgements are continually evaluated and are
based on historical experience and other factors including
expectations of future events that are believed to be reasonable
under the circumstances. Actual results may differ from these
estimates. The significant judgements applied in the preparation
of the financial statements, along with estimates and
assumptions which have a significant risk of causing a material
adjustment to the carrying amount of assets and liabilities within
the next financial year, are discussed below.
Following the reallocation of goodwill balances to retail banners
(refer to note 2), an impairment charge of £84m was recorded in
relation to the goodwill associated with Castorama France,
resulting from higher discount rates and revised financial
projections. In addition, impairment of Castorama France
goodwill has been added as a new ‘Key source of estimation
uncertainty’ given the risk of further material impairments over
the next 12 months.
In September 2024, the European Court of Justice annulled the
decision in relation to the European Commission’s previous
ruling in relation to the state aid investigation into the Group
Financing Exemption section of the UK Controlled Foreign
Company rules. As a result, this is no longer considered to be a
critical accounting judgment.
Key sources of estimation uncertainty
Inventories
The carrying amount of inventories recognised on the balance
sheet, which are carried at the lower of cost and net realisable
value, are subject to estimates around rates of provision applied
to certain inventory items. The level of provisions recorded are
subject to estimation uncertainty in determining the eventual
sales price of goods to customers in the future, as well as
assessing which items may be slow-moving or obsolete. This is
impacted by factors such as stock turn, range or delisted status,
shrinkage, damage, obsolescence and range review activity.
Range reviews and resulting clearance activity add additional
complexity to assessing the level of inventory that may become
obsolete and the expected net realisable value of inventory
which will be sold.
The carrying amount of inventories subject to estimation
uncertainty is £2,719m (2023/24: £2,914m). A 1% increase in the
provision as a percentage of gross inventory (before provisions
and a deduction for rebates) which, based on management’s
judgement, represents a reasonably possible change, would
result in a £30m decrease in the carrying amount of inventories
(2023/24: £32m).
The quantity, age and condition of inventories are regularly
measured and assessed as part of range reviews and inventory
counts undertaken throughout the year and across the Group.
Impairment of store-based assets and Castorama
France goodwill
Impairment of store-based assets
The Group applies procedures to ensure that its assets are
carried at no more than their recoverable amount. These
procedures, by their nature, require estimates and assumptions
to be made. The most significant are set out below.
Store assets are reviewed for impairment if events or changes
in circumstances indicate that their carrying amount may not be
recoverable, or where there is any indication that an impairment
loss recognised in a previous period either no longer exists or
has decreased. When a review for impairment is conducted, the
recoverable amount of an asset or a cash generating unit (CGU)
is determined as the higher of fair value less costs to sell and
value-in-use.
The determination of value-in-use for store assets requires the
estimation of future cash flows expected to arise from the
continuing operation of the store and the determination of
suitable discount and long-term growth rates in order to
calculate the present value of the forecast cash flows.
Judgement is also required around the nature and level of
overheads that are necessarily incurred to generate cash
inflows in the context of allocation to individual store cash
generating units. Note that the estimation of future cash flows
and determination of suitable discount rates requires a greater
level of judgement than the determination of long-term
growth rates.
Sales projections take into consideration both external factors
such as market expectations, and internal factors such as trading
plans. They assume sales increases that are higher than recent
experience and driven by an improved and differentiated offer,
and market growth expectations based on internal and external
forecasts. Assumed margin percentage improvements reflect
increased sales of the Group’s own exclusive brands (OEB) as
well as lower cost of sales from leveraging our key vendors, and
better clearance management. Higher assumed operating profit
percentages reflect operational leverage from increased sales
as well as cost savings through operational efficiencies, including
more efficient organisation and leveraging of goods not for
resale (GNFR) spend. Actual outcomes could vary significantly
from these estimates and sensitivity analyses are undertaken to
assess the impact of projected benefits not being realised. The
pre-tax discount rates applied to the cash flow forecasts are
derived from the post-tax weighted average cost of capital for
each of the territories in which the Group operates. The
assumptions used in the calculation of the weighted average
cost of capital are based on observable external market data.
Cash flows beyond the period of the strategic plans are
calculated using a long-term growth rate based on inflation
expectations which does not exceed the long-term
average growth rates for the countries in which the Group’s
stores operate.
As a result of this review, the Group has recorded net store
asset impairment charges of £94m (2023/24: £76m net charges)
as adjusting items, principally relating to revised financial
projections, and the impact of higher discount rates in France.
Notes to the consolidated financial statements continued
2 Material accounting policies continued
Cash flow hedges
Changes in the effective portion of the fair value of derivatives
that are designated as hedges of future cash flows are
recognised directly in other comprehensive income, with any
ineffective portion being recognised immediately in the income
statement where relevant. If the cash flow hedge of a firm
commitment or forecast transaction results in the recognition of
a non-financial asset or liability, then, at the time it is recognised,
the associated gains or losses on the derivative that had
previously been deferred in equity are included in the initial
measurement of the non-financial asset or liability. For all other
hedges, amounts deferred in equity are recognised in the
income statement in the same period in which the hedged item
affects net profit or loss.
Net investment hedges
Where the Group hedges net investments in foreign operations
through foreign currency borrowings or lease liabilities, the gains
or losses on retranslation are recognised in other
comprehensive income. If the Group uses derivatives as the
hedging instrument, the effective portion of the hedge is
recognised in other comprehensive income, with any ineffective
portion being recognised immediately in the income statement.
Gains and losses accumulated in equity are recycled through the
income statement on disposal of the foreign operation.
In order to qualify for hedge accounting, the Group documents
in advance the risk management objective and strategy for
undertaking the hedge and the relationship between the item
being hedged and the hedging instrument. The Group also
documents and demonstrates an assessment of the relationship
between the hedged item and the hedging instrument, which
shows that the hedge will be highly effective on an ongoing basis
and provides an analysis of the sources of hedge
ineffectiveness. The effectiveness testing is performed at half
year and year end or upon a significant change in circumstances
affecting the hedge effectiveness requirements.
Hedge accounting is discontinued when the hedging instrument
expires or is sold, terminated or exercised, or no longer qualifies
for hedge accounting. At that time, any cumulative gain or loss
on the hedging instrument is retained in equity until the highly
probable forecast transaction occurs. If a hedged transaction is
no longer expected to occur, the net cumulative gain or loss
deferred in equity is transferred to the income statement.
q. Assets and liabilities held for sale
Non-current assets and disposal groups are classified as held
for sale if their carrying amounts will be recovered through a
sale transaction rather than through continuing use. This
condition is regarded as met only when the sale is highly
probable and the asset or disposal group is available for
immediate sale in its present condition subject only to terms that
are usual and customary for sales of such assets.
Management must be committed to the sale, which should be
expected to qualify for recognition as a completed sale within
one year from the date of classification as held for sale.
Non-current assets and disposal groups classified as held for
sale are measured at the lower of carrying amount and fair value
less costs to sell. This excludes financial assets, deferred tax
assets and assets arising from employee benefits, which are
measured according to the relevant accounting policy.
Property, plant and equipment, right-of-use assets and
intangible assets are not depreciated once classified as held for
sale. The Group ceases to use the equity method of accounting
from the date on which an interest in a joint venture or an
interest in an associate becomes classified as held for sale.
r. Share repurchases
Shares purchased for cancellation are deducted from retained
earnings. The Group uses irrevocable closed period buyback
programmes. A liability to purchase shares is recognised at
inception of the programme with any subsequent reduction in
the obligation credited back to retained earnings at the end of
the programme. Share capital is reduced and credited to the
capital redemption reserve once shares are cancelled,
maintaining non-distributable reserves.
s. Reserves
The following describes the nature and purpose of each reserve
within equity:
(i) Share capital
The nominal value of proceeds received for shares issued.
(ii) Share premium
Proceeds received in excess of the nominal value of shares
issued, net of any transaction costs.
(iii) Own shares held
Shares held by The Employee Share Ownership Plan Trust.
(iv) Capital redemption reserve
Amounts transferred from share capital on repurchase of issued
shares which are subsequently cancelled.
(v) Other reserves, comprising:
—
Translation reserve – Gains or losses arising on retranslating
the net assets of overseas operations into the Group’s
presentation currency including gains or losses on net
investment hedges.
—
Cash flow hedge reserve – Cumulative gains and losses on
‘effective’ hedging instruments.
—
Other – Represents the premium on the issue of convertible
loan stock in 1993 and the merger reserve relating to the
acquisition of Darty in 1993.
(vi) Retained earnings
All other net gains and losses and transactions with owners that
are not recognised elsewhere.
151Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
3 Critical accounting judgements and key sources
of estimation uncertainty continued
The carrying amount of store-based assets subject to this
estimation uncertainty is £4,278m (2023/24: £4,416m). The
recoverable amount of impaired store-based assets for which
an impairment loss has been recognised or reversed, including
how the recoverable amount is supported, is as follows:
£ millions
2024/25
2023/24
Value-in-use
444
469
Fair value less costs to sell
205
136
649
605
The following changes in assumptions which, based on the
Group’s previous experience and management’s judgement
represent reasonably possible changes, would lead to the
following impacts on the net impairment charge:
Impact on net
Assumption
Change in assumption
impairment charge
Operating
—
Decrease by 10%
— Increase by £41m
cash flows
—
Increase by 10%
— Decrease by £34m
Post-tax
—
Increase by 1%
— Increase by £37m
discount rate
—
Decrease by 1%
— Decrease by £37m
Further information relating to store assets is provided in notes
15 and 17.
Impairment of Castorama France goodwill
Goodwill is reviewed for impairment annually or earlier if
there is an indication of impairment. When a review for goodwill
impairment is performed, the recoverable amount of the
CGU to which goodwill is allocated is determined based on its
value-in-use. Where the recoverable amount is less than the net
assets of the CGU and related goodwill, an impairment of
goodwill is recorded.
Following the reallocation of goodwill balances to retail banners
(refer to note 2), goodwill of £225m was allocated to the
Castorama France group of CGUs. In the current year, the
Group has recorded an £84m partial impairment of this balance,
principally related to higher discount rates in France and revised
cash flow projections. The carrying amount of the remaining
Castorama France goodwill balance of £140m is highly sensitive
to changes in assumptions, and reasonably possible changes
could result in further material impairment charges.
The determination of value-in-use for the Castorama France
group of CGUs requires the estimation of future cash flows
expected to arise from the continuing operation of the
Castorama France retail banner and the determination of
suitable discount and long-term growth rates. These estimations
are subject to a high degree of uncertainty, in line with those for
the store-based asset impairment review. The relevant cash
flows for the Castorama France group of CGUs are derived
from the same cash flow projections used as part of the store-
based asset impairment review, in addition to the same discount
and long-term growth rates. In line with the value-in-use
methodology used for store-based asset impairment reviews,
cash flows beyond the period of the strategic plans are
calculated using the long-term growth rate.
The Group has reviewed a sensitivity analysis and has
determined that a 10% decrease in operating cash flows,
which could be influenced by a deterioration in external market
conditions against forecasted assumptions or the Group’s ability
to realise internal strategic initiatives, or a 1% increase in the
post-tax discount rate which, based on the Group’s previous
experience and management’s judgement represent reasonably
possible changes, would lead to an impairment of the remaining
£140m goodwill carrying amount.
Further information relating to goodwill is provided in note 13.
Post-employment benefits
The present value of the defined benefit obligations recognised
on the balance sheet is dependent on a number of market rates
and assumptions including interest rates of high-quality
corporate bonds, inflation and mortality rates. The net interest
expense or income is dependent on the interest rates of high-
quality corporate bonds and the net deficit or surplus position.
The market rates and assumptions are based on the conditions
at the time and changes in these can lead to significant
movements in the estimated obligations.
Due to the significance of the UK defined benefit obligation, the
carrying value of which is £1,711m (2023/24: £1,826m), reasonably
possible changes in financial and demographic assumptions (i.e.
discount rates, price inflation/rate of pension increases and
mortality assumptions) could result in a material adjustment to
the financial statements. During the year, changes in financial and
demographic assumptions have resulted in a decrease in the UK
defined benefit obligation of £120m (2023/24: £190m). To help
the reader understand the impact of changes in the key market
rates and assumptions, a sensitivity analysis is provided in
note 28.
Critical accounting judgements
Adjusting items
The Group separately reports adjusting items in order to
calculate adjusted results, as it believes these adjusted
measures provide additional useful information on continuing
performance and trends to shareholders.
Judgement is required in determining whether an item should be
classified as an adjusting item or included within adjusted results.
The Group’s definition of adjusting items is outlined in note 2 (a).
During the year the Group has recorded, before taxation, a
charge for adjusting items of £221m (2023/24: £93m charge).
Total adjusting items after taxation were a charge of £196m
(2023/24: £70m charge). Refer to note 6 for further information
on adjusting items.
Other Information
152 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Consideration of climate-related matters
In preparing these financial statements, the Group has
considered the inclusion of climate change as a ‘principal risk’
and the potential impacts of climate change on these financials.
The rationale for this being included as a principal risk is included
in the Risk section (pages 60 – 65). Climate scenario analysis has
been performed and is set out in the TCFD disclosures on pages
30 to 46. The financial impacts of these scenarios, once
mitigating actions and opportunities are taken into account over
the respective time horizons, are expected to be less than the
results of the Group’s impairment sensitivity analysis on
operating cash flows (see below).
The potential impacts of climate change on the financials have
been considered in the following areas:
— Carrying value and remaining useful economic lives of
property, plant and equipment;
— Carrying value of inventories and valuations of other assets
and of provisions;
— Viability statement assessment of the Group over the next
three years; and
— Cash flow forecasts used for the purposes of impairment
assessments of store-based assets and goodwill.
To support our net-zero ambitions, the Group continues to
invest in more sustainable fixed assets. The Group has not
recognised any impairments or significant levels of accelerated
depreciation to existing fixed assets in the year resulting from
such actual and planned investments (i.e. due to a reduction in
recoverable amounts or expected remaining lives). Current
assets including trade receivables and inventories at the balance
sheet date are expected to be realised within a relatively short
timeframe, and therefore no climate-related risks have been
identified for these balances, whilst the Group is not currently
aware of adverse exposures from climate-change requiring
provisions to be recognised.
The Group’s internal three-year financial plans act as the basis
for the Viability Statement financial modelling and for impairment
reviews of non-current assets including goodwill. They include
consideration of climate-related risks and opportunities
expected within this internal financial planning time horizon.
Within this modelling, cash flow sensitivities are performed, for
which the most severe scenario in the Viability Statement
estimates the impact of a demand or supply shock preventing
the Group from realising a large part of its sales during the peak
trading period. The shock, as described in the Viability Statement
on pages 66 to 67 would go far beyond the expected short-term
impact from a remote climate-driven extreme weather event,
such as severe flooding and the resulting damage, to one of the
group’s distribution centres or network.
The financial modelling of climate change scenarios, as
performed and described in the TCFD disclosure on pages
30 to 46 identified no risks that resulted in an adverse impact
on the Group’s discounted cash flows above 10%, which is the
sensitivity performed for store asset and goodwill impairment
purposes. Climate change risks are therefore not judged to be
key drivers in determining the outcome of the impairment
exercise or the Viability Statement.
As a result, the Group has concluded that climate change risk
does not represent a critical accounting judgement or key
source of estimation uncertainty for the current year financial
statements. This classification will be reassessed in future
reporting periods as we continue to review the impacts, risks
and opportunities presented by climate change and the Group's
commitments to address the challenges presented.
Notes to the consolidated financial statements continued
3 Critical accounting judgements and key sources
of estimation uncertainty continued
The carrying amount of store-based assets subject to this
estimation uncertainty is £4,278m (2023/24: £4,416m). The
recoverable amount of impaired store-based assets for which
an impairment loss has been recognised or reversed, including
how the recoverable amount is supported, is as follows:
£ millions 2024/25 2023/24
Value-in-use 444 469
Fair value less costs to sell 205 136
649 605
The following changes in assumptions which, based on the
Group’s previous experience and management’s judgement
represent reasonably possible changes, would lead to the
following impacts on the net impairment charge:
Assumption Change in assumption
Impact on net
impairment charge
Operating
cash flows
— Decrease by 10% — Increase by £41m
— Increase by 10% — Decrease by £34m
Post-tax
discount rate
— Increase by 1% — Increase by £37m
— Decrease by 1% — Decrease by £37m
Further information relating to store assets is provided in notes
15 and 17.
Impairment of Castorama France goodwill
Goodwill is reviewed for impairment annually or earlier if
there is an indication of impairment. When a review for goodwill
impairment is performed, the recoverable amount of the
CGU to which goodwill is allocated is determined based on its
value-in-use. Where the recoverable amount is less than the net
assets of the CGU and related goodwill, an impairment of
goodwill is recorded.
Following the reallocation of goodwill balances to retail banners
(refer to note 2), goodwill of £225m was allocated to the
Castorama France group of CGUs. In the current year, the
Group has recorded an £84m partial impairment of this balance,
principally related to higher discount rates in France and revised
cash flow projections. The carrying amount of the remaining
Castorama France goodwill balance of £140m is highly sensitive
to changes in assumptions, and reasonably possible changes
could result in further material impairment charges.
The determination of value-in-use for the Castorama France
group of CGUs requires the estimation of future cash flows
expected to arise from the continuing operation of the
Castorama France retail banner and the determination of
suitable discount and long-term growth rates. These estimations
are subject to a high degree of uncertainty, in line with those for
the store-based asset impairment review. The relevant cash
flows for the Castorama France group of CGUs are derived
from the same cash flow projections used as part of the store-
based asset impairment review, in addition to the same discount
and long-term growth rates. In line with the value-in-use
methodology used for store-based asset impairment reviews,
cash flows beyond the period of the strategic plans are
calculated using the long-term growth rate.
The Group has reviewed a sensitivity analysis and has
determined that a 10% decrease in operating cash flows,
which could be influenced by a deterioration in external market
conditions against forecasted assumptions or the Group’s ability
to realise internal strategic initiatives, or a 1% increase in the
post-tax discount rate which, based on the Group’s previous
experience and management’s judgement represent reasonably
possible changes, would lead to an impairment of the remaining
£140m goodwill carrying amount.
Further information relating to goodwill is provided in note 13.
Post-employment benefits
The present value of the defined benefit obligations recognised
on the balance sheet is dependent on a number of market rates
and assumptions including interest rates of high-quality
corporate bonds, inflation and mortality rates. The net interest
expense or income is dependent on the interest rates of high-
quality corporate bonds and the net deficit or surplus position.
The market rates and assumptions are based on the conditions
at the time and changes in these can lead to significant
movements in the estimated obligations.
Due to the significance of the UK defined benefit obligation, the
carrying value of which is £1,711m (2023/24: £1,826m), reasonably
possible changes in financial and demographic assumptions (i.e.
discount rates, price inflation/rate of pension increases and
mortality assumptions) could result in a material adjustment to
the financial statements. During the year, changes in financial and
demographic assumptions have resulted in a decrease in the UK
defined benefit obligation of £120m (2023/24: £190m). To help
the reader understand the impact of changes in the key market
rates and assumptions, a sensitivity analysis is provided in
note 28.
Critical accounting judgements
Adjusting items
The Group separately reports adjusting items in order to
calculate adjusted results, as it believes these adjusted
measures provide additional useful information on continuing
performance and trends to shareholders.
Judgement is required in determining whether an item should be
classified as an adjusting item or included within adjusted results.
The Group’s definition of adjusting items is outlined in note 2 (a).
During the year the Group has recorded, before taxation, a
charge for adjusting items of £221m (2023/24: £93m charge).
Total adjusting items after taxation were a charge of £196m
(2023/24: £70m charge). Refer to note 6 for further information
on adjusting items.
153Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
4 Sales
2023/24
£ millions
2024/25
(re-presented
1
)
B&Q
3,820
3,849
Screwfix
2,636
2,538
Total UK & Ireland
6,456
6,387
Castorama
2,014
2,219
Brico Dépôt
1,869
2,027
Total France
3,883
4,246
Poland
1,788
1,694
Iberia
384
371
Romania
257
269
Screwfix France & Other
2
16
13
Other International
657
653
Total Group
12,784
12,980
1.
Poland is now determined to be a separate reportable segment and has been separated from the ‘Other International’ combination of operating segments.
Refer to note 2.
2.
‘Screwfix France & Other’ consists of the consolidated results of Screwfix France, NeedHelp and revenue from franchise and wholesale agreements.
On 18 July 2024, the Group completed a divestment of our c.80% equity interest in NeedHelp.
5 Segmental analysis
Income statement
2024/25
Other
£ millions
UK & Ireland
France
Poland
International Total
Sales
6,456
3,883
1,788
657
12,784
Retail profit/(loss)
558
95
90
(47)
696
Central costs
(62)
Share of interest and tax of joint ventures
and associates (6)
Adjusting items
(221)
Operating profit
407
Net finance costs
(100)
Profit before taxation
307
2023/24 (re-presented
1
)
Other
£ millions
UK & Ireland
France
Poland
 International Total
Sales
6,387
4,246
1,694
653
12,980
Retail profit/(loss)
555
139
82
(27)
749
Central costs
(60)
Share of interest and tax of joint ventures and
associates
(16)
Adjusting items
(93)
Operating profit
580
Net finance costs
(105)
Profit before taxation
475
Other Information
154 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Balance sheet
Other segmental information
2024/25
Other
£ millions
UK & Ireland
France
Poland
International
Central
Total
Additions to property, plant & equipment, other
intangibles (excluding goodwill) and right-of-use assets
321
157
69
21
1
569
Depreciation and amortisation
413
137
77
27
2
656
Impairment losses
38
157
5
22
–
222
Impairment reversals
(2)
(12)
(4)
(6)
–
(24)
Non-current assets
2
4,362
1,968
999
216
18
7,563
2023/24 (re-presented
1
)
Other
£ millions
UK & Ireland
France
Poland
International
Central
Total
Additions to property, plant & equipment, other
intangibles (excluding goodwill) and right-of-use assets
321
146
106
48
3
624
Depreciation and amortisation
401
137
70
32
1
641
Impairment losses
21
44
11
39
–
115
Impairment reversals
(18)
(8)
–
(2)
–
(28)
Non-current assets
2
4,480
2,127
1,005
279
8
7,899
1. The Group has reassessed its determination of operating and reportable segments in the year. Following this reassessment, Poland is now determined to be a
separate reportable segment and has been separated from the ‘Other International’ combination of operating segments. Other operating segments, which do
not individually meet the definition of a reportable segment, continue to be combined and are presented as ‘Other International’. As a result, the 2023/24
segmental disclosures presented above have been re-presented to reflect this revised determination of reportable segments. There are no changes to the
Group’s reportable segments in the UK & Ireland and France. Refer to note 2.
2. Non-current assets comprise goodwill, other intangible assets, property, plant and equipment, investment property, right-of-use assets and investments in
joint ventures and associates.
The Group’s operating segments are based on the information reported internally to the Board of Directors and Group Executive, and are
generally determined to be the retail banners operating in each geographical area (i.e. B&Q and Screwfix in the UK & Ireland, Castorama, Brico
Dépôt and Screwfix in France, Castorama in Poland, Brico Dépôt in Iberia, Brico Dépôt in Romania and Koçtaş, the Group’s joint venture in
Turkey). NeedHelp, an online services marketplace, and the Group’s franchising and wholesaling operation are also determined to be operating
segments. On 18 July 2024, the Group completed the divestment of its c.80% equity interest in NeedHelp.
The reportable segments disclosed above are based on the geographical areas in which the Group operates. Within both the UK &
Ireland and France reportable segments, operating segments determined at the retail banner level have been aggregated to form
reportable segments (i.e. B&Q and Screwfix in the UK & Ireland, and Castorama and Brico Dépôt in France). Other operating
segments, which do not individually meet the definition of a reportable segment, are combined and presented as ‘Other International’,
consisting of Brico Dépôt Iberia, Brico Dépôt Romania, Screwfix France, Koçtaş, NeedHelp and results from franchising and
wholesaling operations. Screwfix France has not been aggregated as part of the France reportable segment due to its level of
maturity relative to Castorama France and Brico Dépôt France.
The principal activities of the Group are the supply of home improvement products and services. The majority of the sales in each
segment are derived from in-store and online sales of products.
Central costs principally comprise the costs of the Group’s head office before adjusting items.
2024/25
Other
£ millions
UK & Ireland
France
Poland
International
Total
Segment net assets
2,833
1,660
1,168
319
5,980
Central assets
67
Goodwill
2,312
Net debt
(2,015)
Net assets
6,344
2023/24 (re-presented
1
)
Other
£ millions
UK & Ireland
France
Poland
International Total
Segment net assets
2,931
1,753
1,195
360
6,239
Central assets
83
Goodwill
2,398
Net debt
(2,116)
Net assets
6,604
Notes to the consolidated financial statements continued
4 Sales
£ millions 2024/25
2023/24
(re-presented
1
)
B&Q 3,820 3,849
Screwfix 2,636 2,538
Total UK & Ireland 6,456 6,387
Castorama 2,014 2,219
Brico Dépôt 1,869 2,027
Total France 3,883 4,246
Poland 1,788 1,694
Iberia 384 371
Romania 257 269
Screwfix France & Other
2
16 13
Other International 657 653
Total Group 12,784 12,980
1.
Poland is now determined to be a separate reportable segment and has been separated from the ‘Other International’ combination of operating segments.
Refer to note 2.
2.
‘Screwfix France & Other’ consists of the consolidated results of Screwfix France, NeedHelp and revenue from franchise and wholesale agreements.
On 18 July 2024, the Group completed a divestment of our c.80% equity interest in NeedHelp.
5 Segmental analysis
Income statement
£ millions
2024/25
UK & Ireland France Poland
Other
International
Total
Sales 6,456 3,883 1,788 657 12,784
Retail profit/(loss) 558 95 90 (47) 696
Central costs (62)
Share of interest and tax of joint ventures
and associates
(6)
Adjusting items (221)
Operating profit 407
Net finance costs (100)
Profit before taxation 307
£ millions
2023/24 (re-presented
1
)
UK & Ireland France Poland
Other
International
Total
Sales 6,387 4,246 1,694 653 12,980
Retail profit/(loss) 555 139 82 (27) 749
Central costs (60)
Share of interest and tax of joint ventures and
associates (16)
Adjusting items (93)
Operating profit 580
Net finance costs (105)
Profit before taxation 475
155Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
6 Adjusting items
£ millions
2024/25
2023/24
Included within selling and distribution expenses
Net store asset impairment losses
(94)
(76)
Operating model restructuring
(5)
(11)
(99)
(87)
Included within administrative expenses
Castorama France goodwill impairment
(84)
–
Castorama France head-office restructuring
(15)
–
UK guaranteed minimum pension credit
2
–
NeedHelp goodwill impairment
–
(8)
(97)
(8)
Included within other income/expenses
Impairments of Romania assets and other exit costs
(22)
–
Loss on disposal of NeedHelp
(3)
–
Profit on disposal of Crealfi associate investment
–
2
(25)
2
Adjusting items before tax
(221)
(93)
Prior year and other adjusting tax items
25
23
Adjusting items
(196)
(70)
Against the context of our performance in FY 24/25, we have revised future financial projections for a number of stores across the
Group’s portfolio. These revised projections, combined with the impact of higher discount rates in France, have resulted in the
recognition of £94m of net store impairment charges in the year. Impairment charges of £118m have been recorded principally in
France and the UK, partially offset by impairment reversals of £24m principally in France, driven by higher property market values.
During the prior year, the Group commenced formal consultations with employee representatives regarding the Group’s technology
operating model restructuring programme. Charges of £5m were recorded in the year relating to this programme, which has now
been completed.
Following the Group’s reassessment of operating and reportable segments (refer to note 2) and the resulting reallocation of goodwill
balances to retail banners, an impairment charge of £84m was recorded in relation to the goodwill associated with Castorama France,
resulting from increased discount rates and revised financial projections.
During the year, the Group held formal consultations with employee representatives regarding a head office restructuring
programme in Castorama France. Restructuring costs of £15m have been recognised related to this programme, primarily relating to
redundancy costs. No additional adjusting costs are expected to be incurred relating to this programme.
During the year, we updated the methodology under which the liability relating to guaranteed minimum pension equalisation is
calculated for the UK defined benefit scheme, to reflect the methodology chosen by the Trustees, resulting in a £2m credit.
In December 2024, the Group announced that it had reached an agreement to dispose of its 100% interest in its Brico Dépôt Romania
business for an enterprise value of £58m. The sale is expected to complete during the first half of 2025/26. Adjusting charges of
£22m have been recognised in the year relating to this disposal, principally relating to impairment charges recognised on
classification of the business as held for sale, and other exit costs.
During the year, the Group completed the disposal of its c.80% interest in NeedHelp for nil proceeds, resulting in a loss on disposal
of £3m.
Prior year and other adjusting tax items relate principally to deferred tax credits recorded in respect of the impairment and
restructuring expenses noted above, movements in prior year provisions to reflect a reassessment of expected outcomes, agreed
positions with tax authorities and items that have time-expired.
Other Information
156 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
7 Net finance costs
£ millions
2024/25
2023/24
Bank overdrafts, bank loans and derivatives
(1)
–
Fixed term debt
(8)
(7)
Lease liabilities
(123)
(126)
Finance costs
(132)
(133)
Cash and cash equivalents and short-term deposits
22
16
Net interest income on defined benefit pension schemes
7
7
Finance lease income
1
1
Other interest income
2
4
Finance income
32
28
Net finance costs
(100)
(105)
8 Profit before taxation
The following items of expense/(income) have been charged/(credited) in arriving at profit before taxation:
£ millions
2024/25
2023/24
Amortisation of intangible assets
1
125
111
Depreciation of property, plant and equipment, investment property and right-of-use assets
531
530
Impairment of goodwill
84
8
Impairment of intangible assets
6
3
Impairment of property, plant and equipment, right-of-use assets, investment property and assets held for sale
132
104
Reversal of impairment of property, plant and equipment and right-of-use assets
(24)
(28)
Write-down to recoverable amount of trade and other receivables
2
3
1. Of the amortisation of intangible assets charge, £2m (2023/24: £1m) and £123m (2023/24: £110m) are included in selling and distribution expenses and
administrative expenses respectively.
Auditor’s remuneration
£ millions
2024/25
2023/24
Fees payable for the audit of the Company and consolidated financial statements
1.1
1.1
Fees payable to the Company’s auditor and their associates for other services to the Group:
The audit of the Company’s subsidiaries pursuant to legislation
2.2
1.7
Audit fees
3.3
2.8
Audit-related assurance services
0.2
0.2
Other assurance services
0.1
0.1
Non-audit fees
0.3
0.3
Auditor’s remuneration
3.6
3.1
Details of the Group’s policy on the use of auditors for non-audit services, the reasons why the auditor was used rather than another
supplier and how the auditor’s independence and objectivity were safeguarded are set out in the Audit Committee report on page 83.
Audit-related assurance services relate to the interim review. No services were provided pursuant to contingent fee arrangements.
Notes to the consolidated financial statements continued
6 Adjusting items
£ millions 2024/25 2023/24
Included within selling and distribution expenses
Net store asset impairment losses (94) (76)
Operating model restructuring (5) (11)
(99) (87)
Included within administrative expenses
Castorama France goodwill impairment (84) –
Castorama France head-office restructuring (15) –
UK guaranteed minimum pension credit 2 –
NeedHelp goodwill impairment – (8)
(97) (8)
Included within other income/expenses
Impairments of Romania assets and other exit costs (22) –
Loss on disposal of NeedHelp (3) –
Profit on disposal of Crealfi associate investment – 2
(25) 2
Adjusting items before tax (221) (93)
Prior year and other adjusting tax items 25 23
Adjusting items (196) (70)
Against the context of our performance in FY 24/25, we have revised future financial projections for a number of stores across the
Group’s portfolio. These revised projections, combined with the impact of higher discount rates in France, have resulted in the
recognition of £94m of net store impairment charges in the year. Impairment charges of £118m have been recorded principally in
France and the UK, partially offset by impairment reversals of £24m principally in France, driven by higher property market values.
During the prior year, the Group commenced formal consultations with employee representatives regarding the Group’s technology
operating model restructuring programme. Charges of £5m were recorded in the year relating to this programme, which has now
been completed.
Following the Group’s reassessment of operating and reportable segments (refer to note 2) and the resulting reallocation of goodwill
balances to retail banners, an impairment charge of £84m was recorded in relation to the goodwill associated with Castorama France,
resulting from increased discount rates and revised financial projections.
During the year, the Group held formal consultations with employee representatives regarding a head office restructuring
programme in Castorama France. Restructuring costs of £15m have been recognised related to this programme, primarily relating to
redundancy costs. No additional adjusting costs are expected to be incurred relating to this programme.
During the year, we updated the methodology under which the liability relating to guaranteed minimum pension equalisation is
calculated for the UK defined benefit scheme, to reflect the methodology chosen by the Trustees, resulting in a £2m credit.
In December 2024, the Group announced that it had reached an agreement to dispose of its 100% interest in its Brico Dépôt Romania
business for an enterprise value of £58m. The sale is expected to complete during the first half of 2025/26. Adjusting charges of
£22m have been recognised in the year relating to this disposal, principally relating to impairment charges recognised on
classification of the business as held for sale, and other exit costs.
During the year, the Group completed the disposal of its c.80% interest in NeedHelp for nil proceeds, resulting in a loss on disposal
of £3m.
Prior year and other adjusting tax items relate principally to deferred tax credits recorded in respect of the impairment and
restructuring expenses noted above, movements in prior year provisions to reflect a reassessment of expected outcomes, agreed
positions with tax authorities and items that have time-expired.
157Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
9 Employees and Directors
£ millions
2024/25
2023/24
Wages and salaries
1,729
1,687
Social security costs
311
298
Post-employment benefits
Defined contribution
55
50
Defined benefit - current service cost
10
11
Share-based compensation
20
22
Employee benefit expenses
2,125
2,068
Number thousands
2024/25
2023/24
Stores
66
69
Administration
8
7
Average number of persons employed
74
76
The average number of persons employed excludes those employed by the Group’s joint ventures and associates.
Remuneration of directors
£ millions
2024/25
2023/24
Emoluments
4.3
3.5
Amounts received under incentive schemes
1
4.7
–
9.0
3.5
1.
Excludes amounts relating to past directors.
Emoluments comprise fees paid to non-executive directors and, for executive directors, salary and benefits earned during the
relevant financial year, plus cash bonuses awarded for the year.
Remuneration of key management personnel
£ millions
2024/25
2023/24
Short-term employee benefits
11.0
8.4
Post-employment benefits
0.5
0.5
Termination benefits
0.1
0.3
Share-based compensation
3.6
6.5
15.2
15.7
The Group defines key management personnel as being those members of the Board of Directors and the Group Executive.
Further detail with respect to the Directors’ remuneration is set out in the Directors’ Remuneration Report on pages 88 to 119.
There have been no other transactions with key management during the year (2023/24: £nil).
10 Income tax expense
£ millions
2024/25
2023/24
UK corporation tax
Current tax on profits for the year
(79)
(73)
Adjustments in respect of prior years
4
2
(75)
(71)
Overseas tax
Current tax on profits for the year
(26)
(37)
Adjustments in respect of prior years
4
8
(22)
(29)
Current tax
(97)
(100)
Deferred tax
Current year
(13)
(25)
Adjustments in respect of prior years
(12)
(4)
Adjustments in respect of changes in tax rates
–
(1)
Deferred tax
(25)
(30)
Income tax expense
(122)
(130)
Other Information
158 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Factors affecting tax charge for the year
The tax charge for the year differs from the standard rate of corporation tax in the UK of 25% (2023/24: 25%). The differences are
explained below:
£ millions
2024/25
2023/24
Profit before taxation
307
475
Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023/24: 24%
1
)
(77)
(114)
Net expense not deductible for tax purposes
(32)
(9)
Temporary differences:
Losses not recognised
(9)
(12)
Share of post-tax results of joint ventures
(4)
–
Foreign tax rate differences
4
–
Adjustments in respect of prior years
(4)
6
Adjustments in respect of changes in tax rates
–
(1)
Income tax expense
(122)
(130)
1. The UK corporation tax rate increased from 19% to 25% with effect from 1 April 2023. A blended rate of 24% is used for 2023/24 in the reconciliation above to
reflect this change.
The adjusted effective tax rate on profit before adjusting items is 28% (2023/24: 27%). The effective tax rate calculation is set out in
the Financial Review on page 50.
The overall tax rate for the year is 40% (2023/24: 27%). This predominately reflects the blend of tax rates and profits in the Group’s
various jurisdictions, and the applicable tax treatment of adjusting items and losses made by companies which have not been
recognised for deferred tax. This includes a charge in respect of prior year provisions, which reflect a reassessment of expected
outcomes, agreed positions with tax authorities and items that have time-expired. Net expense not deductible for tax purposes does
not include any significant values that have been netted off.
In addition to the amounts charged to the income statement, tax of £30m has been credited directly to equity (2023/24: £19m credit)
of which a £1m charge (2023/24: £nil) is included in current tax and a £31m credit (2023/24: £19m credit) is included in deferred tax.
This principally relates to post-employment benefits.
In July 2023 the Finance (No.2) Act 2023 was enacted in the UK which implemented the global minimum tax rules, commonly referred
to as Pillar Two. The rules implement a domestic top-up tax and a multinational top-up tax in the UK which are effective for the Group
with effect from 1 February 2024. The rules will require the Group to pay top-up taxes in the UK in respect of any operations in
territories where the minimum taxation level of 15% has not been met. Where overseas jurisdictions in which the Group operates
have implemented qualified domestic minimum top-up tax rules, any top-up tax due may be payable in that jurisdiction in part or in full.
The Group has applied the exception to IAS 12 in respect of recognising and disclosing information relating to deferred tax assets and
liabilities arising in respect of Pillar Two.
The Group has assessed the impact of Pillar Two to estimate the exposure to top-up taxes arising from 1 February 2024, and the
associated tax charge included in the financial statements is negligible. The Group will continue to closely monitor further
developments in respect of Pillar Two.
Changes in tax rates
The UK corporation tax rate increased from 19% to 25% on 1 April 2023.
On 13 February 2025, the French government approved a temporary one-year CIT surcharge. Taxable profits will be subject to tax at
the headline statutory rate of 25.00%, plus an additional one-off liability at 41.20% of the average relevant CIT liabilities in respect of
the periods 2024/25 and 2025/26. The impact of the surcharge in 2025/26 on Kingfisher’s French operations is estimated to be £3m.
There were no other significant changes to tax rates announced in the year relating to the overseas territories in which the
Group operates.
Notes to the consolidated financial statements continued
9 Employees and Directors
£ millions 2024/25 2023/24
Wages and salaries 1,729 1,687
Social security costs 311 298
Post-employment benefits
Defined contribution 55 50
Defined benefit - current service cost 10 11
Share-based compensation 20 22
Employee benefit expenses 2,125 2,068
Number thousands 2024/25 2023/24
Stores 66 69
Administration 8 7
Average number of persons employed 74 76
The average number of persons employed excludes those employed by the Group’s joint ventures and associates.
Remuneration of directors
£ millions 2024/25 2023/24
Emoluments 4.3 3.5
Amounts received under incentive schemes
1
4.7 –
9.0 3.5
1.
Excludes amounts relating to past directors.
Emoluments comprise fees paid to non-executive directors and, for executive directors, salary and benefits earned during the
relevant financial year, plus cash bonuses awarded for the year.
Remuneration of key management personnel
£ millions 2024/25 2023/24
Short-term employee benefits 11.0 8.4
Post-employment benefits 0.5 0.5
Termination benefits 0.1 0.3
Share-based compensation 3.6 6.5
15.2 15.7
The Group defines key management personnel as being those members of the Board of Directors and the Group Executive.
Further detail with respect to the Directors’ remuneration is set out in the Directors’ Remuneration Report on pages 88 to 119.
There have been no other transactions with key management during the year (2023/24: £nil).
10 Income tax expense
£ millions 2024/25 2023/24
UK corporation tax
Current tax on profits for the year (79) (73)
Adjustments in respect of prior years 4 2
(75) (71)
Overseas tax
Current tax on profits for the year (26) (37)
Adjustments in respect of prior years 4 8
(22) (29)
Current tax (97) (100)
Deferred tax
Current year (13) (25)
Adjustments in respect of prior years (12) (4)
Adjustments in respect of changes in tax rates – (1)
Deferred tax (25) (30)
Income tax expense (122) (130)
159Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
11 Earnings per share
Pence
2024/25
2023/24
Basic earnings per share
10.1
18.2
Effect of dilutive share options per share
(0.2)
(0.2)
Diluted earnings per share
9.9
18.0
Basic earnings per share
10.1
18.2
Adjusting items before tax per share
12.0
4.9
Prior year and other adjusting tax items per share
(1.4)
(1.2)
Adjusted basic earnings per share
20.7
21.9
Diluted earnings per share
9.9
18.0
Adjusting items before tax per share
11.8
4.8
Prior year and other adjusting tax items per share
(1.3)
(1.2)
Adjusted diluted earnings per share
20.4
21.6
Basic earnings per share is calculated by dividing the profit for the year attributable to equity shareholders of the Company by the
weighted average number of shares in issue during the year, including vested but contingently issuable shares and deferred shares
but excluding those held in the Employee Share Ownership Plan trust (‘ESOP trust’) which for the purpose of this calculation are
treated as cancelled.
For diluted earnings per share, the weighted average number of shares is adjusted to assume conversion of all dilutive potential
ordinary shares. These represent share options granted in connection with employee share-based payment plans that are yet
to vest.
The calculation of basic and diluted earnings per share is based on the profit for the year attributable to equity shareholders of the
Company. A reconciliation of statutory earnings to adjusted earnings is set out below:
£ millions
2024/25
2023/24
Earnings
185
345
Adjusting items before tax
221
93
Prior year and other adjusting tax items
(25)
(23)
Adjusted earnings
381
415
The weighted average number of shares in issue during the year, excluding those held in the ESOP trust, is set out below:
Weighted average number of shares (millions)
2024/25
2023/24
Basic
1,838
1,898
Effect of dilutive potential ordinary shares
29
23
Diluted
1,867
1,921
12 Dividends
£ millions
2024/25
2023/24
Dividends paid to equity shareholders of the Company
Ordinary interim dividend for the year ended 31 January 2025 of 3.80p per share
(year ended 31 January 2024: 3.80p per share)
69
72
Ordinary final dividend for the year ended 31 January 2024 of 8.60p per share
(year ended 31 January 2023: 8.60p per share)
159
165
228
237
The proposed dividend for the year ended 31 January 2025, subject to approval by shareholders at the Annual General Meeting, is
12.40p per share, comprising an interim dividend of 3.80p in respect of the six months ended 31 July 2024 and a final dividend of 8.60p.
The total final dividend for the year ended 31 January 2025, based on the issued share capital as at 31 January 2025, is expected to be
c.£154m. The final amount may vary depending on share movements between the balance sheet and payment date.
Other Information
160 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
13 Goodwill
£ millions
Cost
At 1 February 2024
2,455
Disposals
(8)
Transfers to held for sale
(49)
Exchange differences
(2)
At 31 January 2025
2,396
Impairment
At 1 February 2024
(57)
Charge for the year
(84)
Disposals
8
Transfers to held for sale
49
At 31 January 2025
(84)
Net carrying amount
At 31 January 2025
2,312
Cost
At 1 February 2023
2,457
Exchange differences
(2)
At 31 January 2024
2,455
Impairment
At 1 February 2023
(49)
Charge for the year
(8)
At 31 January 2024
(57)
Net carrying amount
At 31 January 2024
2,398
Impairment tests for goodwill
As a result of the change to a retail banner level determination of operating segments, the goodwill balances previously allocated to
the UK & Ireland and France groups of CGUs and have been reallocated to the groups of CGUs within the retail banners of those
geographical areas (i.e. B&Q and Screwfix in the UK & Ireland and Castorama and Brico Dépôt in France), and tested for impairment at
that level. In line with ‘IAS 36 – Impairment of Assets’, where undergoing reporting structure changes, goodwill should be reallocated
using a ‘relative value’ approach. The Group has determined that each retail banner’s relative value-in-use represents the most
appropriate methodology to determine ‘relative value’. Refer to note 2 for further information on the change in determination of
operating segments and implications of this change on goodwill.
Following these changes, goodwill has been allocated for impairment testing purposes to groups of cash generating units ('CGU's)
as follows:
B&Q Screwfix Castorama Brico Dépôt
£ millions UK & Ireland UK & Ireland France
France
Poland
Total
At 31 January 2025
Cost
1,036
760
225
296
81
2,398
Impairment
–
–
(84)
–
–
(84)
Exchange differences
–
–
(1)
(1)
–
(2)
Net carrying amount
1,036
760
140
295
81
2,312
£ millions
UK
France
Poland
Romania
NeedHelp
Total
At 31 January 2024
Cost
1,796
521
81
49
8
2,455
Impairment
–
–
–
(49)
(8)
(57)
Net carrying amount
1,796
521
81
–
–
2,398
Goodwill impairment charges of £84m have been recorded as adjusting items in relation to Castorama France goodwill. Refer to note
6. Following the reallocation of goodwill balances, impairment of Castorama France goodwill has been added as a new 'Key source of
estimation uncertainty' given the risk of further material impairment over the next 12 months. Refer to note 3.
Notes to the consolidated financial statements continued
11 Earnings per share
Pence 2024/25 2023/24
Basic earnings per share 10.1 18.2
Effect of dilutive share options per share (0.2) (0.2)
Diluted earnings per share 9.9 18.0
Basic earnings per share 10.1 18.2
Adjusting items before tax per share 12.0 4.9
Prior year and other adjusting tax items per share (1.4) (1.2)
Adjusted basic earnings per share 20.7 21.9
Diluted earnings per share 9.9 18.0
Adjusting items before tax per share 11.8 4.8
Prior year and other adjusting tax items per share (1.3) (1.2)
Adjusted diluted earnings per share 20.4 21.6
Basic earnings per share is calculated by dividing the profit for the year attributable to equity shareholders of the Company by the
weighted average number of shares in issue during the year, including vested but contingently issuable shares and deferred shares
but excluding those held in the Employee Share Ownership Plan trust (‘ESOP trust’) which for the purpose of this calculation are
treated as cancelled.
For diluted earnings per share, the weighted average number of shares is adjusted to assume conversion of all dilutive potential
ordinary shares. These represent share options granted in connection with employee share-based payment plans that are yet
to vest.
The calculation of basic and diluted earnings per share is based on the profit for the year attributable to equity shareholders of the
Company. A reconciliation of statutory earnings to adjusted earnings is set out below:
£ millions 2024/25 2023/24
Earnings 185 345
Adjusting items before tax 221 93
Prior year and other adjusting tax items (25) (23)
Adjusted earnings 381 415
The weighted average number of shares in issue during the year, excluding those held in the ESOP trust, is set out below:
Weighted average number of shares (millions) 2024/25 2023/24
Basic 1,838 1,898
Effect of dilutive potential ordinary shares 29 23
Diluted 1,867 1,921
12 Dividends
£ millions 2024/25 2023/24
Dividends paid to equity shareholders of the Company
Ordinary interim dividend for the year ended 31 January 2025 of 3.80p per share
(year ended 31 January 2024: 3.80p per share) 69 72
Ordinary final dividend for the year ended 31 January 2024 of 8.60p per share
(year ended 31 January 2023: 8.60p per share)
159 165
228 237
The proposed dividend for the year ended 31 January 2025, subject to approval by shareholders at the Annual General Meeting, is
12.40p per share, comprising an interim dividend of 3.80p in respect of the six months ended 31 July 2024 and a final dividend of 8.60p.
The total final dividend for the year ended 31 January 2025, based on the issued share capital as at 31 January 2025, is expected to be
c.£154m. The final amount may vary depending on share movements between the balance sheet and payment date.
161Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
13 Goodwill continued
The recoverable amounts of the groups of CGUs have been determined based on value-in-use calculations. The key assumptions
used for value-in-use calculations are set out below.
Assumptions
The cash flow projections are based on approved strategic plans covering a three-year period. These are based on both past
performance and expectations for future market development. The projections reflect the expected benefits from certain strategic
initiatives, including an increased offer, an improved digital journey and improved operational efficiency. As required under IFRS,
cash flows related to uncommitted future restructurings and enhancement capital expenditure are excluded from the projections for
impairment testing purposes. For further details, refer to the Strategic Report on pages 2 to 68.
Key drivers in the strategic plans are sales growth, margin and operating profit percentages. Sales projections take into consideration
both external factors such as market expectations, and internal factors such as execution on our strategy. They assume sales
increases in each country that are driven by an enlarged offer, an improved digital journey and local trading initiatives, supported by
structural changes in the growth of the home improvement market. Assumed gross margin percentages benefit from increased sales
of the Group’s higher margin own exclusive brands (OEB), vendor negotiations and operational leverage from increased sales on
logistics and distribution costs. Assumed operating profit percentages reflect better utilisation of fixed costs as well as cost savings
through operational efficiencies, including a more efficient organisation and leveraging our goods-not-for-resale spend.
Cash flows beyond the period of the strategic plans are calculated using a growth rate which does not exceed the long-term average
growth rate for the countries in which the Group’s CGUs operate.
The pre-tax discount rates are derived from the Group’s weighted average cost of capital, taking into account the cost of equity and
debt, to which specific market-related premium adjustments are made for each country in which the CGU operates.
The risk adjusted nominal discount rates and long-term nominal growth rates used are as follows:
2024/25
2023/24
Annual % rate
UK
France
Poland
UK
France
Poland
Pre-tax discount rate
11.0
11.2
11.7
11.0
10.4
11.3
Post-tax discount rate
8.8
8.9
10.0
8.8
8.2
9.7
Long-term growth rate
2.0
1.8
2.5
2.0
1.6
2.5
The Board has reviewed a sensitivity analysis and does not consider that a reasonably possible change in the assumptions used in the
value-in-use calculations would cause the carrying amounts of the B&Q UK & Ireland, Screwfix UK & Ireland, Brico Dépôt France and
Castorama Poland groups of CGUs to exceed their recoverable amounts.
Refer to note 3, where impairment of Castorama France goodwill is included as a ‘Key source of estimation uncertainty’, for the
sensitivity analysis over the Castorama France goodwill showing the risk of future material impairment.
Other Information
162 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
14 Other intangible assets
£ millions
Computer software
Other
Total
Cost
At 1 February 2024
992
19
1,011
Additions
78
–
78
Disposals
(22)
(1)
(23)
Eliminations
1
(54)
–
(54)
Transfers to held for sale
(4)
(1)
(5)
Exchange differences
(2)
–
(2)
At 31 January 2025
988
17
1,005
Amortisation
At 1 February 2024
(630)
(13)
(643)
Charge for the year
(123)
(2)
(125)
Impairment losses
(6)
–
(6)
Disposals
22
1
23
Eliminations
1
54
–
54
Transfers to held for sale
2
1
3
Exchange differences
1
–
1
At 31 January 2025
(680)
(13)
(693)
Net carrying amount
At 31 January 2025
308
4
312
Cost
At 1 February 2023
888
16
904
Additions
108
3
111
Disposals
(2)
–
(2)
Exchange differences
(2)
–
(2)
At 31 January 2024
992
19
1,011
Amortisation
At 1 February 2023
(520)
(13)
(533)
Charge for the year
(111)
–
(111)
Impairment losses
(3)
–
(3)
Disposals
2
–
2
Exchange differences
2
–
2
At 31 January 2024
(630)
(13)
(643)
Net carrying amount
At 31 January 2024
362
6
368
1. Eliminations consist of amounts in relation to nil net book value assets which have been eliminated from the asset register following a verification project in
the UK.
Additions in the current and prior year primarily related to the development of IT infrastructure for the benefit of the Group.
Computer software cost includes £482m (2023/24: £457m) of internally generated development costs with a £171m (2023/24: £191m)
net carrying amount. None of the Group’s other intangible assets have indefinite useful lives.
Notes to the consolidated financial statements continued
13 Goodwill continued
The recoverable amounts of the groups of CGUs have been determined based on value-in-use calculations. The key assumptions
used for value-in-use calculations are set out below.
Assumptions
The cash flow projections are based on approved strategic plans covering a three-year period. These are based on both past
performance and expectations for future market development. The projections reflect the expected benefits from certain strategic
initiatives, including an increased offer, an improved digital journey and improved operational efficiency. As required under IFRS,
cash flows related to uncommitted future restructurings and enhancement capital expenditure are excluded from the projections for
impairment testing purposes. For further details, refer to the Strategic Report on pages 2 to 68.
Key drivers in the strategic plans are sales growth, margin and operating profit percentages. Sales projections take into consideration
both external factors such as market expectations, and internal factors such as execution on our strategy. They assume sales
increases in each country that are driven by an enlarged offer, an improved digital journey and local trading initiatives, supported by
structural changes in the growth of the home improvement market. Assumed gross margin percentages benefit from increased sales
of the Group’s higher margin own exclusive brands (OEB), vendor negotiations and operational leverage from increased sales on
logistics and distribution costs. Assumed operating profit percentages reflect better utilisation of fixed costs as well as cost savings
through operational efficiencies, including a more efficient organisation and leveraging our goods-not-for-resale spend.
Cash flows beyond the period of the strategic plans are calculated using a growth rate which does not exceed the long-term average
growth rate for the countries in which the Group’s CGUs operate.
The pre-tax discount rates are derived from the Group’s weighted average cost of capital, taking into account the cost of equity and
debt, to which specific market-related premium adjustments are made for each country in which the CGU operates.
The risk adjusted nominal discount rates and long-term nominal growth rates used are as follows:
Annual % rate
2024/25 2023/24
UK France Poland UK France Poland
Pre-tax discount rate 11.0 11.2 11.7 11.0 10.4 11.3
Post-tax discount rate 8.8 8.9 10.0 8.8 8.2 9.7
Long-term growth rate 2.0 1.8 2.5 2.0 1.6 2.5
The Board has reviewed a sensitivity analysis and does not consider that a reasonably possible change in the assumptions used in the
value-in-use calculations would cause the carrying amounts of the B&Q UK & Ireland, Screwfix UK & Ireland, Brico Dépôt France and
Castorama Poland groups of CGUs to exceed their recoverable amounts.
Refer to note 3, where impairment of Castorama France goodwill is included as a ‘Key source of estimation uncertainty’, for the
sensitivity analysis over the Castorama France goodwill showing the risk of future material impairment.
163Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
15 Property, plant and equipment
Land and Fixtures, fittings
£ millions buildings
and equipment
Total
Cost
At 1 February 2024
2,761
3,637
6,398
Additions
32
206
238
Disposals
(11)
(52)
(63)
Eliminations and transfers
1
70
(820)
(750)
Transfers to assets held for sale
(73)
(27)
(100)
Exchange differences
(26)
(19)
(45)
At 31 January 2025
2,753
2,925
5,678
Depreciation
At 1 February 2024
(628)
(2,564)
(3,192)
Charge for the year
(29)
(177)
(206)
Impairment losses
(42)
(34)
(76)
Impairment reversals
14
2
16
Disposals
3
50
53
Eliminations and transfers
1
(2)
752
750
Transfers to assets held for sale
36
24
60
Exchange differences
7
15
22
At 31 January 2025
(641)
(1,932)
(2,573)
Net carrying amount
At 31 January 2025
2,112
993
3,105
Cost
At 1 February 2023
2,737
3,486
6,223
Additions
41
219
260
Disposals
(11)
(51)
(62)
Reclassified from assets held for sale
17
–
17
Exchange differences
(23)
(17)
(40)
At 31 January 2024
2,761
3,637
6,398
Depreciation
At 1 February 2023
(590)
(2,428)
(3,018)
Charge for the year
(35)
(181)
(216)
Impairment losses
(28)
(24)
(52)
Impairment reversals
22
3
25
Disposals
11
50
61
Reclassified from assets held for sale
(17)
–
(17)
Exchange differences
9
16
25
At 31 January 2024
(628)
(2,564)
(3,192)
Net carrying amount
At 31 January 2024
2,133
1,073
3,206
Assets in the course of construction included above at net carrying amount
At 31 January 2025
35
160
195
At 31 January 2024
22
147
169
1.
Eliminations and transfers comprise of amounts in relation to nil net book value assets which have been eliminated from the asset register following a
verification project in the UK, in addition to other transfers across asset categories in the year.
Other Information
164 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Net impairment charges of £60m have been recorded in the year (2023/24: £27m). Current year impairment charges of £76m
(2023/24: £52m) principally relate to store property and equipment assets in France and the UK, resulting from revised financial
projections and higher discount rates in France, as well as the impairment of Brico Dépôt Romania assets classified as held for sale.
These charges are partially offset by impairment reversals of £16m (2023/24: £25m) principally in France, driven by higher property
market values. The net store impairment charges of £60m have been recorded as adjusting items (refer to note 6). Discount and
long-term growth rates are in line with those used for goodwill impairment testing (refer to note 13).
The Group does not revalue properties within its financial statements. A formal valuation of the portfolio was undertaken by external
professional valuers in October 2024, with the valuations then reviewed for any significant updates to 31 January 2025. Based on this
exercise the value of property is £2.6bn (2023/24: £2.7bn) on a sale and leaseback basis with Kingfisher in occupancy. A vacant
possession valuation basis is used to approximate the fair value less costs to sell when reviewing for impairment. The key assumption
used in calculating this is the estimated yields and market rents. Property, plant and equipment market valuations (including vacant
possession valuations) are considered to have been determined by level 3 inputs as defined by the fair value hierarchy of IFRS 13,
‘Fair value measurement’.
Fixtures, fittings and equipment includes items such as store racking, computers and electronic equipment, motor cars and
commercial vehicles.
16 Investment property
£ millions
Cost
At 1 February 2024
40
Transfers from right of use assets
4
Transfers from assets held for sale
3
At 31 January 2025
47
Depreciation
At 1 February 2024
(13)
At 31 January 2025
(13)
Net carrying amount
At 31 January 2025
34
Cost
At 1 February 2023
41
Disposals
(1)
At 31 January 2024
40
Depreciation
At 1 February 2023
(11)
Impairment losses
(2)
At 31 January 2024
(13)
Net carrying amount
At 31 January 2024
27
A property valuation exercise is performed for internal purposes annually as described in note 15. Based on this exercise the fair
value of investment property is £40m (2023/24: £25m). All the investment property market valuations are considered to have been
determined by level 3 inputs as defined by the fair value hierarchy of IFRS 13, ‘Fair value measurement’.
Notes to the consolidated financial statements continued
15 Property, plant and equipment
£ millions
Land and
buildings
Fixtures, fittings
and equipment Total
Cost
At 1 February 2024 2,761 3,637 6,398
Additions 32 206 238
Disposals (11) (52) (63)
Eliminations and transfers
1
70 (820) (750)
Transfers to assets held for sale (73) (27) (100)
Exchange differences (26) (19) (45)
At 31 January 2025 2,753 2,925 5,678
Depreciation
At 1 February 2024 (628) (2,564) (3,192)
Charge for the year (29) (177) (206)
Impairment losses (42) (34) (76)
Impairment reversals 14 2 16
Disposals 3 50 53
Eliminations and transfers
1
(2) 752 750
Transfers to assets held for sale 36 24 60
Exchange differences 7 15 22
At 31 January 2025 (641) (1,932) (2,573)
Net carrying amount
At 31 January 2025 2,112 993 3,105
Cost
At 1 February 2023 2,737 3,486 6,223
Additions 41 219 260
Disposals (11) (51) (62)
Reclassified from assets held for sale 17 – 17
Exchange differences (23) (17) (40)
At 31 January 2024 2,761 3,637 6,398
Depreciation
At 1 February 2023 (590) (2,428) (3,018)
Charge for the year (35) (181) (216)
Impairment losses (28) (24) (52)
Impairment reversals 22 3 25
Disposals 11 50 61
Reclassified from assets held for sale (17) – (17)
Exchange differences 9 16 25
At 31 January 2024 (628) (2,564) (3,192)
Net carrying amount
At 31 January 2024 2,133 1,073 3,206
Assets in the course of construction included above at net carrying amount
At 31 January 2025 35 160 195
At 31 January 2024 22 147 169
1.
Eliminations and transfers comprise of amounts in relation to nil net book value assets which have been eliminated from the asset register following a
verification project in the UK, in addition to other transfers across asset categories in the year.
165Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
17 Leases
The Group is a lessee of various retail stores, offices, warehouses and plant and equipment under lease agreements with varying
terms, escalation clauses and renewal rights. The Group is also a lessor and sub-lessor of space with freehold and leasehold
properties respectively.
Right-of-use assets
£ millions
2024/25
2023/24
Land and buildings
1,661
1,772
Fixtures, fittings and equipment
110
109
Net carrying amount
1,771
1,881
Leased fixtures, fittings and equipment includes items such as mechanical handling equipment and vehicles.
£ millions
2024/25
2023/24
At beginning of year
1,881
1,947
Additions
1
253
253
Depreciation charge for the year
(325)
(314)
Impairment losses
(56)
(50)
Impairment reversals
8
3
Transfers to held for sale
(17)
–
Transfers to investment property
(3)
–
Other movements
2
35
45
Exchange differences
(5)
(3)
At end of year
1,771
1,881
1.
Right-of-use asset additions include new leases, lease renewals and increases in term and/or scope for existing leases.
2.
Other movements principally comprise of amounts in relation to indexation, rent reviews and other changes in lease term and scope.
Net right-of-use asset impairment charges of £48m (2023/24: £47m) primarily relate to store-based assets and are resulting from
revised financial projections and higher discount rates in France. The net store impairment charges of £48m have been recorded as
adjusting items. Refer to note 6.
Amounts included in profit and loss
£ millions
2024/25
2023/24
Short-term rentals
(43)
(59)
Sublease income
2
1
Depreciation of right-of-use assets
Property leases
(284)
(276)
Equipment leases
(41)
(38)
Interest on lease liabilities
Property leases
(116)
(121)
Equipment leases
(6)
(5)
Amounts recognised in the cash flow statement
£ millions
2024/25
2023/24
Interest element of lease rental payments
Property leases
(117)
(121)
Equipment leases
(6)
(5)
Principal element of lease rental payments
Property leases
(344)
(310)
Equipment leases
(43)
(38)
Total cash outflow for leases
(510)
(474)
Other Information
166 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Maturity analysis of operating lease receivables
Undiscounted total future minimum rentals receivable under non-cancellable operating leases are as follows:
£ millions
2024/25
2023/24
Year 1
5
5
Year 2
5
5
Year 3
4
4
Year 4
4
4
Year 5
4
3
Year 6 and onwards
21
18
43
39
Maturity analysis of finance lease receivables
The following table reconciles the undiscounted sublease rentals receivable under non-cancellable finance leases to the present
value of sublease receivables as disclosed as part of trade and other receivables (note 20):
£ millions
2024/25
2023/24
Year 1
2
3
Year 2
2
3
Year 3
1
2
Year 4
1
1
Year 5
–
1
Year 6 and onwards
–
1
Total undiscounted sublease receipts receivable
6
11
Unearned finance income
(1)
(2)
Sublease receivables
5
9
Other lease disclosures
The maturity analysis of lease liabilities has been reflected in note 25 Financial risk management.
Lease arrangements under which rental payments are contingent upon sales, other performance or usage are not significant for
the Group.
There are no corporate restrictions imposed by lease arrangements such as those concerning dividends, additional debt and
further leasing.
Sale and leaseback transactions
No sale and leaseback transactions were entered into in the current or prior year.
Notes to the consolidated financial statements continued
17 Leases
The Group is a lessee of various retail stores, offices, warehouses and plant and equipment under lease agreements with varying
terms, escalation clauses and renewal rights. The Group is also a lessor and sub-lessor of space with freehold and leasehold
properties respectively.
Right-of-use assets
£ millions 2024/25 2023/24
Land and buildings 1,661 1,772
Fixtures, fittings and equipment 110 109
Net carrying amount 1,771 1,881
Leased fixtures, fittings and equipment includes items such as mechanical handling equipment and vehicles.
£ millions 2024/25 2023/24
At beginning of year 1,881 1,947
Additions
1
253 253
Depreciation charge for the year (325) (314)
Impairment losses (56) (50)
Impairment reversals 8 3
Transfers to held for sale (17) –
Transfers to investment property (3) –
Other movements
2
35 45
Exchange differences (5) (3)
At end of year 1,771 1,881
1.
Right-of-use asset additions include new leases, lease renewals and increases in term and/or scope for existing leases.
2.
Other movements principally comprise of amounts in relation to indexation, rent reviews and other changes in lease term and scope.
Net right-of-use asset impairment charges of £48m (2023/24: £47m) primarily relate to store-based assets and are resulting from
revised financial projections and higher discount rates in France. The net store impairment charges of £48m have been recorded as
adjusting items. Refer to note 6.
Amounts included in profit and loss
£ millions 2024/25 2023/24
Short-term rentals (43) (59)
Sublease income 2 1
Depreciation of right-of-use assets
Property leases (284) (276)
Equipment leases (41) (38)
Interest on lease liabilities
Property leases (116) (121)
Equipment leases (6) (5)
Amounts recognised in the cash flow statement
£ millions 2024/25 2023/24
Interest element of lease rental payments
Property leases (117) (121)
Equipment leases (6) (5)
Principal element of lease rental payments
Property leases (344) (310)
Equipment leases (43) (38)
Total cash outflow for leases (510) (474)
167Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
18 Investments in joint ventures and associates
£ millions
At 1 February 2024
19
Share of post-tax results
(15)
Capital contribution
19
Exchange differences
1
 6
At 31 January 2025
29
£ millions
At 1 February 2023
30
Share of post-tax results
(1)
Disposals
2
 (9)
Exchange differences
1
 (1)
At 31 January 2024
19
No goodwill is included in the carrying amount of investments in joint ventures and associates (2023/24: £nil).
Details of the Group’s significant joint ventures and associates are shown below:
Principal place of Class of shares
business
% interest held
owned
Main activity
Principal joint ventures
Koçtaş Yap Marketleri Ticaret A.Ş.
2
Turkey
50%
Ordinary
Retailing
UNIO S.A.S.
2
France
50%
Ordinary
Sourcing
Principal associate
Crealfi S.A.
2,3
France
49%
Ordinary
Finance
Details of material joint ventures:
2024/25
2023/24
Koçtaş
4
Koçtaş
4
Koçtaş
4
Koçtaş
4
£ millions (100%) (50%) (100%) (50%)
Non-current assets
74
37
54
27
Current assets
5
82
41
82
41
Current liabilities
6
(96)
(48)
(86)
(43)
Non-current liabilities
7
(2)
(1)
(12)
(6)
Net assets
58
29
38
19
Sales
342
171
326
163
Operating expenses
8
(360)
(180)
(296)
(148)
Operating profit
(18)
(9)
30
15
Net finance costs
9
(28)
(14)
(32)
(16)
Profit before taxation
(46)
(23)
(2)
(1)
Income tax expense
16
8
–
–
Post-tax results
(30)
(15)
(2)
(1)
1.
Exchange differences include amounts in relation to IAS 29 equity adjustments for Koçtaş.
2.
The financial statements of these companies are prepared to 31 December.
3.
The Group completed the disposal of its interest in Crealfi S.A. on 30 June 2023, resulting in a gain on disposal of £2m.
4.
The joint venture disclosures above relate to the Group’s Turkish joint venture, Koçtaş Yap Marketleri Ticaret A.Ş., which has prepared its financial statements
under IAS 29 – Financial reporting in hyperinflationary economies.
5.
Total current assets (i.e. 100%) include cash and cash equivalents of £24m (2023/24: £4m).
6.
Total current liabilities (i.e. 100%) include financial liabilities of £12m (2023/24: £6m).
7.
Total non-current liabilities (i.e. 100%) include financial liabilities of £nil (2023/24: £nil).
8.
Total operating expenses (i.e. 100%) include £28m depreciation and amortisation charges (2023/24: £14m).
9.
Total net finance costs (i.e. 100%) include £36m finance expense (2023/24: £32m) and £8m finance income (2023/24: £nil).
Other Information
168 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
19 Inventories
£ millions
2024/25
2023/24
Finished goods for resale
2,719
2,914
The cost of inventories recognised as an expense and included in cost of sales for the year ended 31 January 2025 is £7,173m
(2023/24: £7,362m).
20 Trade and other receivables
£ millions
2024/25
2023/24
Non-current
Prepayments
7
9
Sublease receivables
4
6
11
15
Current
Trade receivables
100
101
Allowance for expected credit losses
(12)
(9)
Net trade receivables
88
92
Property receivables
5
4
Sublease receivables
1
3
Merchandise returns asset
10
11
Prepayments
62
79
Rebates due from suppliers
66
119
Other taxation and social security
14
12
Other receivables
30
24
276
344
Trade and other receivables
287
359
The fair values of trade and other receivables approximate to their carrying amounts. Refer to note 25 for further information on the
credit risk associated with trade and other receivables.
Trade receivables
The tables below present the ageing of trade receivables and related allowances for expected credit losses:
2024/25
2023/24
Carrying amount Carrying amount
Expected loss of trade Loss allowance Expected loss rate of trade Loss allowance
£ millions rate (%) receivables (£m) (£m) (%) receivables (£m) (£m)
Current
–
65
–
–
69
–
0-3 months past due
8%
24
2
8%
23
2
3-6 months past due
80%
3
3
45%
2
1
Over 6 months past due
94%
8
7
91%
7
6
Total
100
12
101
9
21 Cash and cash equivalents
£ millions
2024/25
2023/24
Cash at bank and in hand
263
290
Cash equivalents
73
70
Cash and cash equivalents
1
336
360
1. Excludes £9m of cash and cash equivalents included within assets held for sale.
Included in cash and cash equivalents is restricted cash of £39m (2023/24: £41m) relating to cash held by the Group’s captive
insurance company and in virtual captive arrangements.
Cash equivalents include investments in money market funds, and bank deposits fixed for periods of up to three months. The carrying
amount of cash and cash equivalents are approximate to their fair values.
Notes to the consolidated financial statements continued
18 Investments in joint ventures and associates
£ millions
At 1 February 2024 19
Share of post-tax results (15)
Capital contribution 19
Exchange differences
1
6
At 31 January 2025 29
£ millions
At 1 February 2023 30
Share of post-tax results (1)
Disposals
2
(9)
Exchange differences
1
(1)
At 31 January 2024 19
No goodwill is included in the carrying amount of investments in joint ventures and associates (2023/24: £nil).
Details of the Group’s significant joint ventures and associates are shown below:
Principal place of
business % interest held
Class of shares
owned Main activity
Principal joint ventures
Koçtaş Yap Marketleri Ticaret A.Ş.
2
Turkey 50% Ordinary Retailing
UNIO S.A.S.
2
France 50% Ordinary Sourcing
Principal associate
Crealfi S.A.
2,3
France 49% Ordinary Finance
Details of material joint ventures:
2024/25 2023/24
£ millions
Koçtaş
4
(100%)
Koçtaş
4
(50%)
Koçtaş
4
(100%)
Koçtaş
4
(50%)
Non-current assets 74 37 54 27
Current assets
5
82 41 82 41
Current liabilities
6
(96) (48) (86) (43)
Non-current liabilities
7
(2) (1) (12) (6)
Net assets 58 29 38 19
Sales 342 171 326 163
Operating expenses
8
(360) (180) (296) (148)
Operating profit (18) (9) 30 15
Net finance costs
9
(28) (14) (32) (16)
Profit before taxation (46) (23) (2) (1)
Income tax expense 16 8 – –
Post-tax results (30) (15) (2) (1)
1.
Exchange differences include amounts in relation to IAS 29 equity adjustments for Koçtaş.
2.
The financial statements of these companies are prepared to 31 December.
3.
The Group completed the disposal of its interest in Crealfi S.A. on 30 June 2023, resulting in a gain on disposal of £2m.
4.
The joint venture disclosures above relate to the Group’s Turkish joint venture, Koçtaş Yap Marketleri Ticaret A.Ş., which has prepared its financial statements
under IAS 29 – Financial reporting in hyperinflationary economies.
5.
Total current assets (i.e. 100%) include cash and cash equivalents of £24m (2023/24: £4m).
6.
Total current liabilities (i.e. 100%) include financial liabilities of £12m (2023/24: £6m).
7.
Total non-current liabilities (i.e. 100%) include financial liabilities of £nil (2023/24: £nil).
8.
Total operating expenses (i.e. 100%) include £28m depreciation and amortisation charges (2023/24: £14m).
9.
Total net finance costs (i.e. 100%) include £36m finance expense (2023/24: £32m) and £8m finance income (2023/24: £nil).
169Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
22 Trade and other payables
£ millions
2024/25
2023/24
Current
Trade payables
1,178
1,239
Other taxation and social security
272
262
Deferred income
145
153
Share purchase obligations
26
–
Merchandise returns provision
17
20
Payroll creditors and accruals
224
217
Accruals and other payables
493
554
2,355
2,445
Non-current
Accruals and other payables
2
3
Trade and other payables
2,357
2,448
The fair values of trade and other payables approximate to their carrying amounts.
Accruals and other payables include items related to goods not for resale, property, capital expenditure, insurance and interest.
The share repurchase obligations relate to a liability arising under an irrevocable closed season buyback of the Company’s own
shares (refer to note 29).
The deferred income balance represents amounts received directly from customers for goods and services where the Group has
not yet fulfilled its performance obligations, including unfulfilled sales orders and installation sales. Performance obligations are
expected to be met within twelve months of the reporting date. In both the current and prior year, the total opening balance was
recognised in sales in the year.
£ millions
2024/25
2023/24
Opening balance
153
179
Revenue recognised which has previously been deferred
(153)
(179)
Revenue deferred
145
153
Closing balance
145
153
Included in trade payables are amounts at 31 January 2025 of £123m (2024/25: £122m) for which suppliers have received payment
from finance providers under trade finance facilities. Judgement is required to assess the payables subject to these arrangements
and whether they should continue to be classified as trade payables, and whether the cash flows should continue to be classified as
cash flows from operating activities. Suppliers choose to enter into these arrangements at their discretion for working capital
management purposes, which provide access to favourable interest rates from the finance providers based on Kingfisher’s
investment grade credit rating. If suppliers do not choose early payment under these arrangements, their invoices are settled by the
finance providers in accordance with the originally agreed payment terms. In certain arrangements, Kingfisher has agreed extended
payment terms. Facilities are provided by approved bank counterparties and are uncommitted. The Group does not pay any
additional interest to the finance providers on the amounts owed to suppliers.
These arrangements do not provide the Group with a significant benefit of additional financing and accordingly are classified as trade
payables. The total size of these facilities at the reporting date is £349m (2023/24: £373m). Of these facilities, £274m are subject to
payment terms which are in line with normal payment terms for the suppliers and are paid between 30 and 90 days.
For the remaining £75m, Kingfisher has agreed extended payment terms with the finance providers. The carrying amount at 31
January 2025 of financial liabilities that have extended payment terms under these arrangements is £19m. Without this facility, the
Group pays such suppliers on average 60 days after the invoice date. Payment terms for these financial liabilities that are part of the
arrangements are extended by an average of 10 days, and by no more than 20 days.
The arrangements do not result in concentration of liquidity risk because of the limited amount of liabilities subject to supplier finance
arrangements and the Group’s access to other sources of finance. There were no significant non-cash changes in the carrying
amount of the trade payables included in the Group's supplier finance arrangements.
Other Information
170 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
23 Borrowings
£ millions
2024/25
2023/24
Current
Bank overdrafts
9
7
Fixed term debt
99
–
108
7
Non-current
Bank loans
1
3
Fixed term debt
–
99
1
102
Borrowings
109
109
Bank loans
Non-current bank loans have an average maturity of two years (2023/24: four years) and are arranged at fixed rates of interest with
an effective interest rate of 3.8% (2023/24: 3.6%).
Fixed term debt
2024/25
2023/24
Principal Effective Carrying amount Carrying amount
outstanding
Maturity date
Coupon
interest rate £m £m
GBP Term Loan
£50m
17/01/26
SONIA + 0.725%
5.9%
50
50
GBP Term Loan
£50m
23/06/25
SONIA + 0.725%
5.9%
49
49
99
99
As at 31 January 2025, the Group had an undrawn revolving credit facility (RCF) of £650m which expires at the end of May 2027.
The terms of the committed RCF and term loans require that the ratio of Group operating profit (excluding adjusting items) to net
interest payable (excluding interest on IFRS 16 lease liabilities) must be no less than 3:1 for the preceding 12 months as at the half and
full year ends. At 31 January 2025, the Group was in compliance with this requirement.
Fair values
Fair value
£ millions
2024/25
2023/24
Bank overdrafts
9
7
Bank loans
2
3
Fixed term debt
102
101
Borrowings
113
111
Fair values of borrowings have been calculated by discounting cash flows at prevailing interest and foreign exchange rates. This has
resulted in level 2 inputs as defined by the fair value hierarchy of IFRS 13, ‘Fair value measurement’.
24 Derivatives
£ millions
2024/25
2023/24
Current assets
22
2
Non-current assets
2
–
Current liabilities
(5)
(23)
Non-current liabilities
–
(1)
19
(22)
The net fair value of derivatives by hedge designation at the balance sheet date is:
£ millions
2024/25
2023/24
Cash flow hedges
17
(21)
Non-designated hedges
2
(1)
19
(22)
Notes to the consolidated financial statements continued
22 Trade and other payables
£ millions 2024/25 2023/24
Current
Trade payables 1,178 1,239
Other taxation and social security 272 262
Deferred income 145 153
Share purchase obligations 26 –
Merchandise returns provision 17 20
Payroll creditors and accruals 224 217
Accruals and other payables 493 554
2,355 2,445
Non-current
Accruals and other payables 2 3
Trade and other payables 2,357 2,448
The fair values of trade and other payables approximate to their carrying amounts.
Accruals and other payables include items related to goods not for resale, property, capital expenditure, insurance and interest.
The share repurchase obligations relate to a liability arising under an irrevocable closed season buyback of the Company’s own
shares (refer to note 29).
The deferred income balance represents amounts received directly from customers for goods and services where the Group has
not yet fulfilled its performance obligations, including unfulfilled sales orders and installation sales. Performance obligations are
expected to be met within twelve months of the reporting date. In both the current and prior year, the total opening balance was
recognised in sales in the year.
£ millions 2024/25 2023/24
Opening balance 153 179
Revenue recognised which has previously been deferred (153) (179)
Revenue deferred 145 153
Closing balance 145 153
Included in trade payables are amounts at 31 January 2025 of £123m (2024/25: £122m) for which suppliers have received payment
from finance providers under trade finance facilities. Judgement is required to assess the payables subject to these arrangements
and whether they should continue to be classified as trade payables, and whether the cash flows should continue to be classified as
cash flows from operating activities. Suppliers choose to enter into these arrangements at their discretion for working capital
management purposes, which provide access to favourable interest rates from the finance providers based on Kingfisher’s
investment grade credit rating. If suppliers do not choose early payment under these arrangements, their invoices are settled by the
finance providers in accordance with the originally agreed payment terms. In certain arrangements, Kingfisher has agreed extended
payment terms. Facilities are provided by approved bank counterparties and are uncommitted. The Group does not pay any
additional interest to the finance providers on the amounts owed to suppliers.
These arrangements do not provide the Group with a significant benefit of additional financing and accordingly are classified as trade
payables. The total size of these facilities at the reporting date is £349m (2023/24: £373m). Of these facilities, £274m are subject to
payment terms which are in line with normal payment terms for the suppliers and are paid between 30 and 90 days.
For the remaining £75m, Kingfisher has agreed extended payment terms with the finance providers. The carrying amount at 31
January 2025 of financial liabilities that have extended payment terms under these arrangements is £19m. Without this facility, the
Group pays such suppliers on average 60 days after the invoice date. Payment terms for these financial liabilities that are part of the
arrangements are extended by an average of 10 days, and by no more than 20 days.
The arrangements do not result in concentration of liquidity risk because of the limited amount of liabilities subject to supplier finance
arrangements and the Group’s access to other sources of finance. There were no significant non-cash changes in the carrying
amount of the trade payables included in the Group's supplier finance arrangements.
171Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
24 Derivatives continued
The Group holds the following derivative financial instruments at fair value:
£ millions
2024/25
2023/24
Foreign exchange contracts
24
2
Derivative assets
24
2
Foreign exchange contracts
(5)
(24)
Derivative liabilities
(5)
(24)
19
(22)
The fair values are calculated by discounting future cash flows arising from the instruments and adjusted for credit risk. These fair
value measurements are all made using observable market rates of interest, foreign exchange and credit risk.
All the derivatives held by the Group at fair value are considered to have fair values determined by level 2 inputs as defined by the fair
value hierarchy of IFRS 13, ‘Fair value measurement’, representing significant observable inputs other than quoted prices in active
markets for identical assets or liabilities. There are no non-recurring fair value measurements nor have there been any transfers of
assets or liabilities between levels of the fair value hierarchy.
At 31 January 2025, net financing derivative assets included in net debt amount to £2m (2023/24: £nil).
Cash flow hedges
Forward foreign exchange contracts hedge currency exposures of forecast inventory purchases. At 31 January 2025, the Sterling
equivalent amount of such contracts is £959m (2023/24: £822m). These are located in the derivative asset and derivative liability lines
in the consolidated balance sheet with carrying amounts of £21m asset and £4m liability. The associated fair value gains and losses will
be transferred to inventories when the purchases occur during the next 18 months. The amount recognised in other comprehensive
income during the year is a gain of £22m (2023/24: £32m loss). A loss of £15m (2023/24: £33m) has been transferred to inventories
for contracts which matured during the year. During the year a loss of £1m (2023/24: £12m) has been transferred to the income
statement due to ineffectiveness arising from differences in timing and amount of forecast transaction relating to foreign currency
inventory purchases. The weighted average hedged rates for derivatives outstanding at 31 January 2025 for our material currencies
are EUR/USD 1.10 and GBP/USD 1.27.
Hedge effectiveness is assessed at the inception of the hedge relationship and on an ongoing basis to ensure that an economic
relationship exists between the hedged item and the hedging instrument. The Group enters into hedge relationships where the critical
terms of the hedging instrument match exactly with the terms of the hedged item. The Group therefore performs a qualitative
assessment of effectiveness.
For foreign currency inventory purchases, ineffectiveness may arise if the timing or amount of the forecast transaction changes
from what was originally estimated or if there are changes in the credit risk of the Group or the derivative counterparty. Foreign
currency basis spread of the derivative has been excluded from the hedge designation, however this is judged to be immaterial and
no adjustment has been made to the income statement.
Non-designated hedges
The Group has entered into certain derivatives to provide a hedge against fluctuations in the income statement arising from balance
sheet positions. At 31 January 2025, the Sterling equivalent amount of such contracts is £706m (2023/24: £463m). These have not
been accounted for as hedges, since the fair value movements of the derivatives in the income statement offset the retranslation of
the balance sheet positions.
The Group has reviewed all significant contracts for embedded derivatives and none of these contracts has any embedded
derivatives which are not closely related to the host contract and therefore the Group is not required to account for
these separately.
The Group enters into netting agreements with counterparties to manage the credit and settlement risks associated with over-the-
counter derivatives. These netting agreements and similar arrangements generally enable the Group and its counterparties to
settle cash flows on a net basis and set-off liabilities against available assets in the event that either party is unable to fulfil its
contractual obligations.
Other Information
172 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Offsetting of derivative assets and liabilities:
Net amounts of Gross amounts
Gross amounts derivatives of derivatives not
Gross amounts offset in the presented in the offset in the
of recognised consolidated consolidated consolidated
£ millions derivatives balance sheet balance sheet balance sheet Net amount
At 31 January 2025
Derivative assets
24
–
24
(5)
19
Derivative liabilities
(5)
–
(5)
5
–
At 31 January 2024
Derivative assets
2
–
2
(2)
–
Derivative liabilities
(24)
–
(24)
2
(22)
Net investment hedges
Foreign currency denominated lease liabilities are designated as hedging the exposure to movements in the spot retranslation of the
Group’s investment in foreign subsidiaries. The gains and losses on retranslation of the hedging instruments are presented in the
translation reserve within other reserves to offset gains and losses on the hedged balance sheet exposure. The nominal values of
these lease liabilities are £233m (2023/24: £232m). The amount recognised in the translation reserve is a gain of £nil (2023/24: £9m
gain). There is no ineffectiveness for 2024/25. The cumulative total amount recognised in the translation reserve in relation to net
investment hedges is a loss of £103m (2023/24: £103m).
Categories of financial instruments
The table below sets out the carrying amount of financial assets and liabilities for each financial instrument category as defined
by IFRS 9:
2024/25
1
 2023/24
Fair value
Fair value
through other
Fair value
through other
Fair value
comprehensive
through
Amortised
comprehensive through profit Amortised
£ millions
income
2
profit or loss
cost
Total
income
2
or loss cost Total
Cash and cash equivalents
–
–
336
336
–
–
360
360
Trade and other receivables – current
3
–
–
190
190
–
–
242
242
Trade and other receivables – non-current
3
–
–
4
4
–
–
6
6
Derivative assets – current
19
3
–
22
2
–
–
2
Derivative assets – non-current
2
–
–
2
–
–
–
–
Trade and other payables – current
3
–
–
(1,697)
(1,697)
–
–
(1,793)
(1,793)
Trade and other payables – non-current
3
–
–
(2)
(2)
–
–
(3)
(3)
Derivative liabilities – current
(4)
(1)
–
(5)
(22)
(1)
–
(23)
Derivative liabilities – non-current
–
–
–
–
(1)
–
–
(1)
Borrowings – current
–
–
(108)
(108)
–
–
(7)
(7)
Borrowings – non-current
–
–
(1)
(1)
–
–
(102)
(102)
Lease liabilities – current
–
–
(345)
(345)
–
–
(366)
(366)
Lease liabilities – non-current
–
–
(1,866)
(1,866)
–
–
(2,001)
(2,001)
Financial assets and liabilities
17
2
(3,489)
(3,470)
(21)
(1)
(3,664)
(3,686)
1. Excludes Romania financial assets and liabilities which are classified as held for sale.
2. Relating to derivatives in designated hedge relationships.
3. Excluding non-financial items relating to prepayments, merchandise returns assets and provisions and deferred income, and non-contractual items relating to
other taxation and social security payables and receivables and payroll creditors and accruals.
25 Financial risk management
The Group’s treasury function has primary responsibility for managing certain financial risks to which the Group is exposed. The
Board reviews the levels of exposure regularly and approves treasury policies covering the use of financial instruments required
to manage these risks. Kingfisher’s treasury function is not run as a profit centre and does not enter into any transactions for
speculative purposes.
In the normal course of business, the Group uses financial instruments including derivatives. The main types of financial instruments
used are fixed term debt, bank loans and deposits, money market funds, and foreign exchange contracts.
Interest rate risk
Borrowings arranged at floating rates of interest expose the Group to cash flow interest rate risk, whereas those arranged at
fixed rates of interest expose the Group to fair value interest rate risk. Where appropriate, the Group manages its interest rate
risk by entering into certain interest rate derivative contracts which modify the interest rate payable on the Group’s underlying
debt instruments.
Notes to the consolidated financial statements continued
24 Derivatives continued
The Group holds the following derivative financial instruments at fair value:
£ millions 2024/25 2023/24
Foreign exchange contracts 24 2
Derivative assets 24 2
Foreign exchange contracts (5) (24)
Derivative liabilities (5) (24)
19 (22)
The fair values are calculated by discounting future cash flows arising from the instruments and adjusted for credit risk. These fair
value measurements are all made using observable market rates of interest, foreign exchange and credit risk.
All the derivatives held by the Group at fair value are considered to have fair values determined by level 2 inputs as defined by the fair
value hierarchy of IFRS 13, ‘Fair value measurement’, representing significant observable inputs other than quoted prices in active
markets for identical assets or liabilities. There are no non-recurring fair value measurements nor have there been any transfers of
assets or liabilities between levels of the fair value hierarchy.
At 31 January 2025, net financing derivative assets included in net debt amount to £2m (2023/24: £nil).
Cash flow hedges
Forward foreign exchange contracts hedge currency exposures of forecast inventory purchases. At 31 January 2025, the Sterling
equivalent amount of such contracts is £959m (2023/24: £822m). These are located in the derivative asset and derivative liability lines
in the consolidated balance sheet with carrying amounts of £21m asset and £4m liability. The associated fair value gains and losses will
be transferred to inventories when the purchases occur during the next 18 months. The amount recognised in other comprehensive
income during the year is a gain of £22m (2023/24: £32m loss). A loss of £15m (2023/24: £33m) has been transferred to inventories
for contracts which matured during the year. During the year a loss of £1m (2023/24: £12m) has been transferred to the income
statement due to ineffectiveness arising from differences in timing and amount of forecast transaction relating to foreign currency
inventory purchases. The weighted average hedged rates for derivatives outstanding at 31 January 2025 for our material currencies
are EUR/USD 1.10 and GBP/USD 1.27.
Hedge effectiveness is assessed at the inception of the hedge relationship and on an ongoing basis to ensure that an economic
relationship exists between the hedged item and the hedging instrument. The Group enters into hedge relationships where the critical
terms of the hedging instrument match exactly with the terms of the hedged item. The Group therefore performs a qualitative
assessment of effectiveness.
For foreign currency inventory purchases, ineffectiveness may arise if the timing or amount of the forecast transaction changes
from what was originally estimated or if there are changes in the credit risk of the Group or the derivative counterparty. Foreign
currency basis spread of the derivative has been excluded from the hedge designation, however this is judged to be immaterial and
no adjustment has been made to the income statement.
Non-designated hedges
The Group has entered into certain derivatives to provide a hedge against fluctuations in the income statement arising from balance
sheet positions. At 31 January 2025, the Sterling equivalent amount of such contracts is £706m (2023/24: £463m). These have not
been accounted for as hedges, since the fair value movements of the derivatives in the income statement offset the retranslation of
the balance sheet positions.
The Group has reviewed all significant contracts for embedded derivatives and none of these contracts has any embedded
derivatives which are not closely related to the host contract and therefore the Group is not required to account for
these separately.
The Group enters into netting agreements with counterparties to manage the credit and settlement risks associated with over-the-
counter derivatives. These netting agreements and similar arrangements generally enable the Group and its counterparties to
settle cash flows on a net basis and set-off liabilities against available assets in the event that either party is unable to fulfil its
contractual obligations.
173Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
25 Financial risk management continued
Currency risk
The Group’s principal currency exposures are to the Euro, US Dollar, Polish Zloty and Romanian Leu. The Euro, Polish Zloty and
Romanian Leu exposures are operational and arise through the ownership of retail businesses in France, Spain, Portugal, the Republic
of Ireland, Poland and Romania.
In particular, the Group generates a substantial part of its profit from the Eurozone and, as such, is exposed to the economic
uncertainty of its member states. The Group continues to monitor potential exposures and risks and consider effective risk
management solutions.
It is the Group’s policy not to hedge the translation of overseas earnings into Sterling. In addition, the Group has significant
transactional exposure arising on the purchase of inventories denominated in US Dollars, which it hedges using forward foreign
exchange contracts. Under Group policies, the Group’s operating companies are required to hedge committed inventory purchases
and a proportion of forecast inventory purchases arising in the next 18 months. This is monitored on an ongoing basis.
The Group also has exposure to certain leases denominated in currencies which are different from the functional (reporting)
currencies of the lessee. To reduce the Group’s exposure to this, most of the affected lease liabilities have been designated as net
investment hedges of Group assets held in the same currency.
The Group’s policy is to manage the interest rate and currency profile of its debt and cash using derivative contracts. The effect of
these contracts on the Group’s net debt is as follows:
2024/25
Sterling
Euro
US Dollar
Other
£ millions
Fixed
Floating
Fixed
Floating
Fixed
Floating
Fixed
Floating
Total
At 31 January 2025
Net cash/(debt) before financing
derivatives and lease liabilities
–
23
(2)
81
–
80
–
54
236
Financing derivatives
–
(591)
–
201
–
372
–
20
2
Lease liabilities
(1,611)
–
(553)
–
–
–
(89)
–
(2,253)
Net (debt)/cash
1
(1,611)
(568)
(555)
282
–
452
(89)
74
(2,015)
1.
Includes net debt held for sale.
2023/24
Sterling
Euro
US Dollar
Other
£ millions
Fixed
Floating
Fixed
Floating
Fixed
Floating
Fixed
Floating
Total
At 31 January 2024
Net (debt)/cash before financing
derivatives and lease liabilities
–
(10)
(2)
135
–
90
–
38
251
Financing derivatives
–
(391)
–
85
–
305
–
1
–
Lease liabilities
(1,722)
–
(596)
–
–
–
(49)
–
(2,367)
Net (debt)/cash
(1,722)
(401)
(598)
220
–
395
(49)
39
(2,116)
Financial instruments principally affected by interest rate and currency risks, being the significant market risks impacting the Group,
are borrowings, deposits and derivatives. The following analysis illustrates the sensitivity of net finance costs (reflecting the impact on
profit) and derivative cash flow hedges (reflecting the impact on other comprehensive income) to changes in interest rates and
foreign exchange rates.
2024/25
2023/24
Net finance Net finance
£ millions costs costs
Effect of 1% rise in interest rates on net finance costs
Sterling
(6)
(4)
Euro
3
2
US Dollar
5
4
Other
–
–
Due to the Group’s hedging arrangements and offsetting foreign currency assets and liabilities, there is no significant impact on profit
from the retranslation of financial instruments.
Other Information
174 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
2024/25
2023/24
Derivative cash Derivative cash
flow hedges flow hedges
£ millions increase increase
Effect of 10% appreciation in foreign exchange rates on derivative cash flow hedges
US Dollar against Sterling
80
69
US Dollar against Euro
21
22
US Dollar against other
10
9
The impact of changes in foreign exchange rates on cash flow hedges results from retranslation of forward purchases of US Dollars
used to hedge forecast US Dollar purchases of inventories. The associated fair value gains and losses are deferred in equity until the
purchases occur. Refer to note 24 for further details.
The sensitivity analysis excludes the impact of movements in market variables on the carrying amount of trade and other payables
and receivables, due to the low associated sensitivity, and are before the effect of tax. It has been prepared on the basis that the
Group’s debt, hedging activities, hedge accounting designations, and foreign currency proportion of debt and derivative contracts
remain constant, reflecting the positions at 31 January 2025 and 31 January 2024 respectively. As a consequence, the analysis relates
to the position at those dates and is not necessarily representative of the years then ended. In preparing the sensitivity analysis it is
assumed that all hedges are fully effective.
The effects shown above would be reversed in the event of an equal and opposite change in interest rates and foreign
exchange rates.
Liquidity risk
The Group regularly reviews the level of cash and debt facilities required to fund its activities. This involves preparing a prudent cash
flow forecast for the medium term, determining the level of debt facilities required to fund the business, planning for repayment of
debt at its maturity and identifying an appropriate amount of headroom to provide a reserve against unexpected outflows and/or
unexpected impacts to cash inflows.
At 31 January 2025, the Group had an undrawn revolving credit facility (RCF) of £650m, which is due to expire in May 2027.
The following table analyses the Group’s financial liabilities and derivatives into relevant maturity groupings based on the remaining
period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual
undiscounted cash flows (including interest) and as such may differ from the amounts disclosed on the balance sheet.
2024/25
Less than 1 More than 5
£ millions On demand
year
1-2 years
2-3 years
3-4 years
4-5 years
years
Total
At 31 January 2025
Bank overdrafts
(9)
–
–
–
–
–
–
(9)
Trade and other payables
1
–
(1,697)
(2)
–
–
–
–
(1,699)
Bank loans and fixed term debt
–
(108)
(1)
–
–
–
–
(109)
Lease liabilities
–
(446)
(425)
(373)
(319)
(269)
(996)
(2,828)
Derivative financial liabilities:
Derivative contracts – receipts
–
276
25
–
–
–
–
301
Derivative contracts – payments
–
(283)
(26)
–
–
–
–
(309)
Derivative financial assets:
Derivative contracts – receipts
–
1,317
48
–
–
–
–
1,365
Derivative contracts – payments
–
(1,294)
(46)
–
–
–
–
(1,340)
Notes to the consolidated financial statements continued
25 Financial risk management continued
Currency risk
The Group’s principal currency exposures are to the Euro, US Dollar, Polish Zloty and Romanian Leu. The Euro, Polish Zloty and
Romanian Leu exposures are operational and arise through the ownership of retail businesses in France, Spain, Portugal, the Republic
of Ireland, Poland and Romania.
In particular, the Group generates a substantial part of its profit from the Eurozone and, as such, is exposed to the economic
uncertainty of its member states. The Group continues to monitor potential exposures and risks and consider effective risk
management solutions.
It is the Group’s policy not to hedge the translation of overseas earnings into Sterling. In addition, the Group has significant
transactional exposure arising on the purchase of inventories denominated in US Dollars, which it hedges using forward foreign
exchange contracts. Under Group policies, the Group’s operating companies are required to hedge committed inventory purchases
and a proportion of forecast inventory purchases arising in the next 18 months. This is monitored on an ongoing basis.
The Group also has exposure to certain leases denominated in currencies which are different from the functional (reporting)
currencies of the lessee. To reduce the Group’s exposure to this, most of the affected lease liabilities have been designated as net
investment hedges of Group assets held in the same currency.
The Group’s policy is to manage the interest rate and currency profile of its debt and cash using derivative contracts. The effect of
these contracts on the Group’s net debt is as follows:
£ millions
2024/25
Sterling Euro US Dollar Other
Fixed Floating Fixed Floating Fixed Floating Fixed Floating Total
At 31 January 2025
Net cash/(debt) before financing
derivatives and lease liabilities – 23 (2) 81 – 80 – 54 236
Financing derivatives – (591) – 201 – 372 – 20 2
Lease liabilities (1,611) – (553) – – – (89) – (2,253)
Net (debt)/cash
1
(1,611) (568) (555) 282 – 452 (89) 74 (2,015)
1.
Includes net debt held for sale.
£ millions
2023/24
Sterling Euro US Dollar Other
Fixed Floating Fixed Floating Fixed Floating Fixed Floating Total
At 31 January 2024
Net (debt)/cash before financing
derivatives and lease liabilities
– (10) (2) 135 – 90 – 38 251
Financing derivatives – (391) – 85 – 305 – 1 –
Lease liabilities (1,722) – (596) – – – (49) – (2,367)
Net (debt)/cash (1,722) (401) (598) 220 – 395 (49) 39 (2,116)
Financial instruments principally affected by interest rate and currency risks, being the significant market risks impacting the Group,
are borrowings, deposits and derivatives. The following analysis illustrates the sensitivity of net finance costs (reflecting the impact on
profit) and derivative cash flow hedges (reflecting the impact on other comprehensive income) to changes in interest rates and
foreign exchange rates.
2024/25 2023/24
£ millions
Net finance
costs
Net finance
costs
Effect of 1% rise in interest rates on net finance costs
Sterling (6) (4)
Euro 3 2
US Dollar 5 4
Other – –
Due to the Group’s hedging arrangements and offsetting foreign currency assets and liabilities, there is no significant impact on profit
from the retranslation of financial instruments.
175Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
25 Financial risk management continued
2023/24
Less than 1 More than 5
£ millions On demand year
1-2 years
2-3 years
3-4 years
4-5 years
years Total
At 31 January 2024
Bank overdrafts
(7)
–
–
–
–
–
–
(7)
Trade and other payables
1
–
(1,793)
(3)
–
–
–
–
(1,796)
Bank loans and fixed term debt
–
(6)
(105)
(1)
(1)
–
–
(113)
Lease liabilities
–
(470)
(439)
(395)
(339)
(283)
(1,107)
(3,033)
Derivative financial liabilities:
Derivative contracts – receipts
–
788
39
–
–
–
–
827
Derivative contracts – payments
–
(812)
(41)
–
–
–
–
(853)
Derivative financial assets:
Derivative contracts – receipts
–
442
16
–
–
–
–
458
Derivative contracts – payments
–
(439)
(15)
–
–
–
–
(454)
1.
Excluding non-financial items relating to deferred income and merchandise returns provisions and non-contractual items relating to other taxation and social
security payables and payroll creditors and accruals.
Credit risk
The Group manages credit risk from investing activities in accordance with treasury policy. The Group deposits surplus cash with a
number of banks with strong long-term credit ratings (BBB and above) and with money market funds with AAA credit ratings offering
same-day liquidity. An exposure limit for each counterparty is agreed by the Board, covering the full value of deposits and the fair
value of derivative assets. Credit risk is also managed by spreading investments and entering into derivative contracts across several
counterparties. As of 31 January 2025, the highest total cash investment with a single counterparty was £17m (2023/24: £21m).
The table below analyses the Group’s cash and cash equivalents and derivative assets by credit exposure, excluding cash held in
stores and cash in transit.
Credit rating of counterparty
1
£ millions
AAA
AA+
AA
AA-
A+
A
A-
BBB +/-
Other rating
Total
Cash and cash equivalents
2
18
–
–
–
192
22
21
1
–
254
Derivative assets
–
–
–
–
14
5
5
–
–
24
At 31 January 2025
18
–
–
–
206
27
26
1
–
278
Credit rating of counterparty
1
£ millions
AAA
AA+
AA
AA-
A+
A
A-
BBB +/-
Other rating
Total
Cash and cash equivalents
2
115
–
–
–
145
13
1
5
2
281
Derivative assets
–
–
–
–
2
–
–
–
–
2
At 31 January 2024
115
–
–
–
147
13
1
5
2
283
1.
Standard & Poor’s equivalent rating shown. The Group determines this rating with reference to the majority credit rating from Standard & Poor’s, Moody’s or
Fitch where applicable.
2.
Cash and cash equivalents excludes cash held in stores and cash in transit balances of £82m (2023/24: £79m).
The Group applies the low credit risk simplification under IFRS 9 for expected credit losses relating to cash at bank, short-term
deposits and money market funds. The resulting expected credit losses are not significant.
The Group’s exposure to credit risk at the reporting date is the carrying value of trade and other receivables, cash at bank, short-
term deposits and the fair value of derivative assets. Trade and other receivables mainly relate to trade receivables and rebates
which comprise low individual balances with short maturity spread across a large number of unrelated customers and suppliers,
resulting in low credit risk levels. They do not have a significant financing component and therefore the Group measures expected
credit losses using lifetime expected losses.
The estimated lifetime expected losses are based on historical loss rates adjusted where necessary for expected changes in
economic conditions.
At 31 January 2025, trade and other receivables that are past due amount to £35m (2023/24: £44m), of which £1m (2023/24: £4m) are
over 120 days past due.
Capital risk
Capital risk management disclosures are provided in the Financial Review on pages 47 to 55.
Other Information
176 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
26 Deferred tax
£ millions
2024/25
2023/24
Deferred tax assets
7
10
Deferred tax liabilities
(193)
(207)
(186)
(197)
Deferred tax assets and liabilities are offset against each other when they relate to income taxes levied by the same tax jurisdiction
and when the Group intends, and has the legally enforceable right, to settle its current tax assets and liabilities on a net basis.
2024/25
Accelerated Short-term Post- Investment in
tax Gains on timing employment
£ millions depreciation
property
Leases
differences
Tax losses
benefits
subsidiaries
Other
Total
At 1 February 2024
(227)
(50)
118
38
1
(81)
–
4
(197)
(Charge)/credit to income
statement
(12)
5
(12)
–
(1)
(4)
(1)
–
(25)
Credit/(charge) to equity
–
–
–
–
–
38
–
(7)
31
Transfers to held for sale
–
2
–
–
–
–
–
–
2
Exchange differences
3
1
–
–
–
(1)
–
–
3
At 31 January 2025
(236)
(42)
106
38
–
(48)
(1)
(3)
(186)
2023/24
Accelerated Short-term Post- Investment in
tax Gains on timing employment
£ millions depreciation property Leases differences Tax losses benefits
subsidiaries
Other
Total
At 1 February 2023
(215)
(56)
130
44
1
(99)
(1)
7
(189)
(Charge)/credit to income
statement
(15)
4
(10)
(7)
–
(2)
1
(1)
(30)
(Charge)/credit to equity
–
–
(2)
1
–
22
–
(2)
19
Exchange differences
3
2
–
–
–
(2)
–
–
3
At 31 January 2024
(227)
(50)
118
38
1
(81)
–
4
(197)
At the balance sheet date, the Group has unused trading tax losses of £269m (2023/24: £223m) available for offset against future
profits. Included in this amount there are tax losses arising in Romania of £182m (2023/24: £149m) which can only be carried forward
for a maximum of seven years. Of these, £20m will expire in the next twelve months, £94m in the next two to five years, and £68m in
the next six to seven years. Other unrecognised losses may be carried forward indefinitely. No deferred tax asset has been
recognised in respect of these losses (2023/24: £1m) due to the unpredictability of future profit streams.
At the balance sheet date, the Group also has unused capital tax losses of £10m (2023/24: £10m) available for offset against future
capital gains. No deferred tax asset has been recognised in the year in respect of such losses (2023/24: £nil). All of these losses may
be carried forward indefinitely.
A deferred tax liability of £1m (2023/24: £1m) has been recognised in the period, reflecting the withholding tax anticipated to arise in
light of a planned repatriation of certain earnings that were generated in the current year. Except for this liability, all other unremitted
earnings of overseas subsidiaries and joint ventures are continually reinvested by the Group. Therefore as no tax is expected to be
payable on these earnings in the foreseeable future, no deferred tax liabilities are recorded in relation to them. Additional earnings
which could be remitted on which there would be tax to pay total £224m (2023/24: £241m).
An accounting surplus is recognised for the UK defined benefit pension scheme (refer to note 28). The surplus has been recognised
on the basis that the future economic benefits are unconditionally available to the Group, which is assumed to be via a refund
assuming the full settlement of plan liabilities in the event of a plan wind-up. On 22 November 2023, the UK government announced
that the authorised surplus payments charge would be reduced from 35% to 25% from 6 April 2024. Following the enactment of
this legislation on 11 March 2024, the deferred tax liability has been reduced by £32m with a corresponding credit to other
comprehensive income.
Notes to the consolidated financial statements continued
25 Financial risk management continued
£ millions
2023/24
On demand
Less than 1
year
1-2 years 2-3 years 3-4 years 4-5 years
More than 5
years
Total
At 31 January 2024
Bank overdrafts (7) – – – – – – (7)
Trade and other payables
1
– (1,793) (3) – – – – (1,796)
Bank loans and fixed term debt – (6) (105) (1) (1) – – (113)
Lease liabilities – (470) (439) (395) (339) (283) (1,107) (3,033)
Derivative financial liabilities:
Derivative contracts – receipts – 788 39 – – – – 827
Derivative contracts – payments – (812) (41) – – – – (853)
Derivative financial assets:
Derivative contracts – receipts – 442 16 – – – – 458
Derivative contracts – payments – (439) (15) – – – – (454)
1.
Excluding non-financial items relating to deferred income and merchandise returns provisions and non-contractual items relating to other taxation and social
security payables and payroll creditors and accruals.
Credit risk
The Group manages credit risk from investing activities in accordance with treasury policy. The Group deposits surplus cash with a
number of banks with strong long-term credit ratings (BBB and above) and with money market funds with AAA credit ratings offering
same-day liquidity. An exposure limit for each counterparty is agreed by the Board, covering the full value of deposits and the fair
value of derivative assets. Credit risk is also managed by spreading investments and entering into derivative contracts across several
counterparties. As of 31 January 2025, the highest total cash investment with a single counterparty was £17m (2023/24: £21m).
The table below analyses the Group’s cash and cash equivalents and derivative assets by credit exposure, excluding cash held in
stores and cash in transit.
Credit rating of counterparty
1
£ millions AAA AA+ AA AA- A+ A A- BBB +/- Other rating Total
Cash and cash equivalents
2
18 – – – 192 22 21 1 – 254
Derivative assets – – – – 14 5 5 – – 24
At 31 January 2025 18 – – – 206 27 26 1 – 278
Credit rating of counterparty
1
£ millions AAA AA+ AA AA- A+ A A- BBB +/- Other rating Total
Cash and cash equivalents
2
115 – – – 145 13 1 5 2 281
Derivative assets – – – – 2 – – – – 2
At 31 January 2024 115 – – – 147 13 1 5 2 283
1.
Standard & Poor’s equivalent rating shown. The Group determines this rating with reference to the majority credit rating from Standard & Poor’s, Moody’s or
Fitch where applicable.
2.
Cash and cash equivalents excludes cash held in stores and cash in transit balances of £82m (2023/24: £79m).
The Group applies the low credit risk simplification under IFRS 9 for expected credit losses relating to cash at bank, short-term
deposits and money market funds. The resulting expected credit losses are not significant.
The Group’s exposure to credit risk at the reporting date is the carrying value of trade and other receivables, cash at bank, short-
term deposits and the fair value of derivative assets. Trade and other receivables mainly relate to trade receivables and rebates
which comprise low individual balances with short maturity spread across a large number of unrelated customers and suppliers,
resulting in low credit risk levels. They do not have a significant financing component and therefore the Group measures expected
credit losses using lifetime expected losses.
The estimated lifetime expected losses are based on historical loss rates adjusted where necessary for expected changes in
economic conditions.
At 31 January 2025, trade and other receivables that are past due amount to £35m (2023/24: £44m), of which £1m (2023/24: £4m) are
over 120 days past due.
Capital risk
Capital risk management disclosures are provided in the Financial Review on pages 47 to 55.
177Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
27 Provisions
£ millions
At 1 February 2024
16
Charged to income statement
18
Released to income statement
(1)
Utilised in the year
(8)
At 31 January 2025
25
Current liabilities
16
Non-current liabilities
9
25
Provisions are principally comprised of restructuring provisions relating to restructuring plans in France. Amounts charged to the
income statement in the current year of £18m are principally related to the Castorama France head-office and operating model
restructuring costs incurred in the year. Refer to note 6 for further details.
The ultimate costs and timing of cash flows related to the above provisions are largely dependent on the timing of the related
people costs.
28 Post-employment benefits
The Group operates a variety of post-employment benefit arrangements covering both funded and unfunded defined benefit
schemes and defined contribution schemes. The most significant defined benefit and defined contribution schemes are in the UK.
The principal overseas defined benefit schemes are in France, where they are mainly retirement indemnity in nature.
Defined contribution schemes
Costs for the Group’s defined contribution pension schemes, at rates specified in the individual schemes’ rules, are as follows:
£ millions
2024/25
2023/24
Charge to operating profit
55
50
From July 2012, an enhanced defined contribution pension scheme was offered to all UK employees. Eligible UK employees have
been automatically enrolled into the scheme since 31 March 2013.
Defined benefit schemes
The Group’s principal defined benefit arrangement is its funded, final salary pension scheme in the UK. This scheme was closed to
new entrants from April 2004 and was closed to future benefit accrual from July 2012.
The scheme operates under trust law and is managed and administered by the Trustee on behalf of members in accordance with the
terms of the Trust Deed and Rules and relevant legislation. The Trustee Board consists of ten Trustee Directors, made up of five
employer-appointed Directors, one independent Director and four member-nominated Directors. The Trustee Board delegates
day-to-day administration of the scheme to the Group pensions department of Kingfisher plc.
The main risk to the Group is that additional contributions are required if investment returns and demographic experience are worse
than expected. The scheme therefore exposes the Group to actuarial risks, such as longevity risk, currency risk, inflation risk, interest
rate risk and market (investment) risk. The Trustee Board regularly reviews such risks and mitigating controls, with a risk register being
formally approved on an annual basis. The assets of the scheme are held separately from the Group and the Trustee’s investment
strategy includes a planned medium-term de-risking of assets, switching from return-seeking to liability-matching assets. Other de-
risking activities have included the scheme acquiring an interest in a property partnership, as set out further below, and entering into
bulk annuities.
A full actuarial valuation of the scheme is carried out every three years by an independent actuary for the Trustee and the last full
valuation was carried out as at 31 March 2022. Following this valuation and in accordance with the scheme’s Statement of Funding
Principles, the Trustee and Kingfisher have agreed to cease annual employer contributions during the period from August 2022 to
July 2025. This agreement has been reached with reference to a funding objective that targets a longer-term, low risk funding
position in excess of the minimum statutory funding requirements. This longer-term objective is based on the principle of the scheme
reaching a point where it can provide benefits to members with a high level of security, thereby limiting its reliance on the employer
for future support. The Company monitors the scheme funding level on a regular basis and will reassess with the scheme Trustee the
appropriate level of contributions as part of the 2025 valuation.
Other Information
178 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
The Trust Deed provides Kingfisher with an unconditional right to a refund of surplus assets assuming the full settlement of plan
liabilities in the event of a plan wind-up. Furthermore, in the ordinary course of business the Trustee has no rights to unilaterally wind
up, or otherwise augment the benefits due to members of the scheme. Based on these rights, any net surplus in the UK scheme is
recognised in full.
On 25 July 2024, in the case Virgin Media v NTL Pension Trustees II Limited (and others), the Court of Appeal upheld the High Court’s
2023 decision which confirmed that certain rules of a contracted-out defined benefit scheme cannot be altered without the
statutory actuarial confirmation having been obtained and that non-compliant alterations are void. The Company has commenced its
assessment as to whether the ruling has any implications on the UK defined benefit scheme and whether or not the impact is material.
The Company will continue to monitor further relevant court cases due to be heard in 2025, as well as updates from the Government
as to whether it will issue new regulations in response to this issue.
UK scheme interest in property partnership
In 2010/11, the Group established a partnership, Kingfisher Scottish Limited Partnership (‘Kingfisher SLP’), as part of an arrangement
with the UK scheme Trustee to address an element of the scheme deficit and provide greater security to the Trustee. The
partnership interests are held by the Group and by the scheme, the latter resulting from investments of £78m and £106m made by the
Trustee in January and June 2011 respectively. These investments followed Group contributions of the same amounts into the
scheme. In accordance with IAS 19, ‘Employee benefits’, the investments held by the scheme in Kingfisher SLP do not represent plan
assets for the purposes of the Group’s consolidated financial statements. Accordingly, the reported pension position does not reflect
these investments.
UK property assets with market values of £83m and £119m were transferred, in January 2011 and June 2011 respectively, into the
partnership and leased back to B&Q Limited. The Group retains control over these properties, including the flexibility to substitute
alternative properties. The Trustee has a first charge over the properties in the event that Kingfisher plc becomes insolvent. The
scheme’s partnership interest entitles it to much of the income of the partnership over the 20-year period of the arrangement. At the
end of this term, Kingfisher plc has the option to acquire the Trustee’s partnership interest in Kingfisher SLP.
The Kingfisher SLP is a structured entity, where voting rights are not the dominant factor in determining control, in which both the
Group and the Trustee hold an interest. A general partner, ‘Kingfisher Properties Investments Limited’, wholly owned by the Group,
has responsibility for the management and control of the Kingfisher SLP. As the Group can direct Kingfisher SLP’s relevant activities
and affect its returns, it has been concluded that the Group controls the partnership, despite not having a majority interest and
therefore it is consolidated in these Group financial statements. Accordingly, advantage has been taken of the exemptions provided
by Regulation 7 of the Partnerships (Accounts) Regulations 2008 from the requirements for preparation, delivery and publication of
the partnership’s accounts.
Income statement
2024/25
2023/24
£ millions
UK
Overseas
Total
UK
Overseas
Total
Amounts charged/(credited) to operating profit
Current service cost
3
7
10
3
8
11
Past service credit
(2)
(13)
(15)
–
(3)
(3)
Administration costs
5
–
5
4
–
4
6
(6)
–
7
5
12
Amounts (credited)/charged to net finance costs
Net interest (income)/expense
(10)
3
(7)
(11)
4
(7)
Total (credited)/charged to income statement
(4)
(3)
(7)
(4)
9
5
Of the net charge to operating profit, a £5m credit (2023/24: £8m charge) and £5m charge (2023/24: £4m charge) are included in
selling and distribution expenses and administrative expenses respectively. Remeasurement gains and losses have been reported in
the statement of comprehensive income.
Notes to the consolidated financial statements continued
27 Provisions
£ millions
At 1 February 2024 16
Charged to income statement 18
Released to income statement (1)
Utilised in the year (8)
At 31 January 2025 25
Current liabilities 16
Non-current liabilities 9
25
Provisions are principally comprised of restructuring provisions relating to restructuring plans in France. Amounts charged to the
income statement in the current year of £18m are principally related to the Castorama France head-office and operating model
restructuring costs incurred in the year. Refer to note 6 for further details.
The ultimate costs and timing of cash flows related to the above provisions are largely dependent on the timing of the related
people costs.
28 Post-employment benefits
The Group operates a variety of post-employment benefit arrangements covering both funded and unfunded defined benefit
schemes and defined contribution schemes. The most significant defined benefit and defined contribution schemes are in the UK.
The principal overseas defined benefit schemes are in France, where they are mainly retirement indemnity in nature.
Defined contribution schemes
Costs for the Group’s defined contribution pension schemes, at rates specified in the individual schemes’ rules, are as follows:
£ millions 2024/25 2023/24
Charge to operating profit 55 50
From July 2012, an enhanced defined contribution pension scheme was offered to all UK employees. Eligible UK employees have
been automatically enrolled into the scheme since 31 March 2013.
Defined benefit schemes
The Group’s principal defined benefit arrangement is its funded, final salary pension scheme in the UK. This scheme was closed to
new entrants from April 2004 and was closed to future benefit accrual from July 2012.
The scheme operates under trust law and is managed and administered by the Trustee on behalf of members in accordance with the
terms of the Trust Deed and Rules and relevant legislation. The Trustee Board consists of ten Trustee Directors, made up of five
employer-appointed Directors, one independent Director and four member-nominated Directors. The Trustee Board delegates
day-to-day administration of the scheme to the Group pensions department of Kingfisher plc.
The main risk to the Group is that additional contributions are required if investment returns and demographic experience are worse
than expected. The scheme therefore exposes the Group to actuarial risks, such as longevity risk, currency risk, inflation risk, interest
rate risk and market (investment) risk. The Trustee Board regularly reviews such risks and mitigating controls, with a risk register being
formally approved on an annual basis. The assets of the scheme are held separately from the Group and the Trustee’s investment
strategy includes a planned medium-term de-risking of assets, switching from return-seeking to liability-matching assets. Other de-
risking activities have included the scheme acquiring an interest in a property partnership, as set out further below, and entering into
bulk annuities.
A full actuarial valuation of the scheme is carried out every three years by an independent actuary for the Trustee and the last full
valuation was carried out as at 31 March 2022. Following this valuation and in accordance with the scheme’s Statement of Funding
Principles, the Trustee and Kingfisher have agreed to cease annual employer contributions during the period from August 2022 to
July 2025. This agreement has been reached with reference to a funding objective that targets a longer-term, low risk funding
position in excess of the minimum statutory funding requirements. This longer-term objective is based on the principle of the scheme
reaching a point where it can provide benefits to members with a high level of security, thereby limiting its reliance on the employer
for future support. The Company monitors the scheme funding level on a regular basis and will reassess with the scheme Trustee the
appropriate level of contributions as part of the 2025 valuation.
179Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
28 Post-employment benefits continued
Balance sheet
2024/25
2023/24
£ millions
UK
Overseas
Total
UK
Overseas
Total
Present value of defined benefit obligations
(1,711)
(121)
(1,832)
(1,826)
(133)
(1,959)
Fair value of scheme assets
1,913
20
1,933
2,038
20
2,058
Net surplus/(deficit)
202
(101)
101
212
(113)
99
Movements in the surplus or deficit are as follows:
2024/25
2023/24
£ millions
UK
Overseas
Total
UK
Overseas
Total
Net surplus/(deficit) at beginning of year
212
(113)
99
251
(114)
137
Current service cost
(3)
(7)
(10)
(3)
(8)
(11)
Past service credit
2
13
15
–
3
3
Administration costs
(5)
–
(5)
(4)
–
(4)
Net interest income/(expense)
10
(3)
7
11
(4)
7
Net remeasurement (losses)/gains
(14)
3
(11)
(43)
1
(42)
Contributions paid by employer
–
5
5
–
5
5
Exchange differences
–
1
1
–
4
4
Net surplus/(deficit) at end of year
202
(101)
101
212
(113)
99
Movements in the present value of defined benefit obligations are as follows:
2024/25
2023/24
£ millions
UK
Overseas
Total
UK
Overseas
Total
Present value of defined benefit obligations at beginning of year
(1,826)
(133)
(1,959)
(1,979)
(134)
(2,113)
Current service cost
(3)
(7)
(10)
(3)
(8)
(11)
Past service credit
2
13
15
–
3
3
Interest expense
(87)
(3)
(90)
(87)
(4)
(91)
Remeasurement gains/(losses) – changes in financial assumptions
115
–
115
136
(2)
134
Remeasurement gains – changes in demographic assumptions
5
3
8
54
–
54
Remeasurement (losses)/gains – experience adjustments
(7)
–
(7)
(34)
3
(31)
Benefits paid
90
5
95
87
5
92
Exchange differences
–
1
1
–
4
4
Present value of defined benefit obligations at end of year
(1,711)
(121)
(1,832)
(1,826)
(133)
(1,959)
The present value of UK scheme defined benefit obligations is 52% (2023/24: 50%) in respect of deferred members and 48%
(2023/24: 50%) in respect of current pensioners.
The weighted average duration of the UK scheme obligations at the end of the year is 14 years (2023/24: 15 years).
Other Information
180 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Movements in the fair value of scheme assets are as follows:
2024/25
2023/24
£ millions
UK
Overseas
Total
UK
Overseas
Total
Fair value of scheme assets at beginning of year
2,038
20
2,058
2,230
20
2,250
Administration costs
(5)
–
(5)
(4)
–
(4)
Interest income
97
–
97
98
–
98
Remeasurement losses – actual return less interest income
(127)
–
(127)
(199)
–
(199)
Contributions paid by employer
–
5
5
–
5
5
Benefits paid
(90)
(5)
(95)
(87)
(5)
(92)
Fair value of scheme assets at end of year
1,913
20
1,933
2,038
20
2,058
The fair value of scheme assets is analysed as follows:
2024/25
2023/24
£ millions
UK
Overseas
Total
% of total
UK
Overseas
Total
% of total
Government bonds
1
642
–
642
33%
712
–
712
34%
Corporate bonds
358
–
358
19%
332
–
332
16%
Derivatives
(21)
–
(21)
(1)%
(49)
–
(49)
(2)%
Equities
15
–
15
1%
33
–
33
2%
Annuities
736
–
736
38%
783
–
783
38%
Cash
74
–
74
4%
98
–
98
5%
Other
109
20
129
6%
129
20
149
7%
Total fair value of scheme assets
1,913
20
1,933
100%
2,038
20
2,058
100%
1. Including LDI repurchase agreement liabilities.
All UK scheme assets have quoted prices in active markets, except for £845m (2023/24: £912m) of annuity and other assets.
To reduce volatility risk, a liability driven investment (‘LDI’) strategy forms part of the Trustee’s management of the UK defined benefit
scheme’s assets, including government bonds, corporate bonds and derivatives. The government bond assets category in the table
above includes gross assets of £1.0bn (2023/24: £1.2bn) and associated repurchase agreement liabilities of £0.4bn (2023/24: £0.5bn).
Repurchase agreements are entered into with counterparties to better offset the scheme’s exposure to interest and inflation rates,
whilst remaining invested in assets of a similar risk profile. Interest rate and inflation rate derivatives are also employed to
complement the use of fixed and index-linked bonds in matching the profile of the scheme’s liabilities.
Principal actuarial valuation assumptions
The assumptions used in calculating the costs and obligations of the Group’s defined benefit pension schemes are set by the
Directors after consultation with independent professionally qualified actuaries. The assumptions are based on the conditions at
the time and changes in these assumptions can lead to significant movements in the estimated obligations, as illustrated in the
sensitivity analysis.
The UK scheme discount rate is derived using a single equivalent discount rate approach, based on the yields available on a portfolio
of high-quality Sterling corporate bonds with the same duration as that of the scheme liabilities.
2024/25
2023/24
Annual % rate
UK
Overseas
UK
Overseas
Discount rate
5.40
3.40
4.85
3.45
Price inflation
3.25
2.40
3.10
2.40
Rate of pension increases
3.05
–
2.95
–
Salary escalation
n/a
2.8
n/a
2.40
Notes to the consolidated financial statements continued
28 Post-employment benefits continued
Balance sheet
£ millions
2024/25 2023/24
UK Overseas Total UK Overseas Total
Present value of defined benefit obligations (1,711) (121) (1,832) (1,826) (133) (1,959)
Fair value of scheme assets 1,913 20 1,933 2,038 20 2,058
Net surplus/(deficit) 202 (101) 101 212 (113) 99
Movements in the surplus or deficit are as follows:
£ millions
2024/25 2023/24
UK Overseas Total UK Overseas Total
Net surplus/(deficit) at beginning of year 212 (113) 99 251 (114) 137
Current service cost (3) (7) (10) (3) (8) (11)
Past service credit 2 13 15 – 3 3
Administration costs (5) – (5) (4) – (4)
Net interest income/(expense) 10 (3) 7 11 (4) 7
Net remeasurement (losses)/gains (14) 3 (11) (43) 1 (42)
Contributions paid by employer – 5 5 – 5 5
Exchange differences – 1 1 – 4 4
Net surplus/(deficit) at end of year 202 (101) 101 212 (113) 99
Movements in the present value of defined benefit obligations are as follows:
2024/25 2023/24
£ millions UK Overseas Total UK Overseas Total
Present value of defined benefit obligations at beginning of year (1,826) (133) (1,959) (1,979) (134) (2,113)
Current service cost (3) (7) (10) (3) (8) (11)
Past service credit 2 13 15 – 3 3
Interest expense (87) (3) (90) (87) (4) (91)
Remeasurement gains/(losses) – changes in financial assumptions 115 – 115 136 (2) 134
Remeasurement gains – changes in demographic assumptions 5 3 8 54 – 54
Remeasurement (losses)/gains – experience adjustments (7) – (7) (34) 3 (31)
Benefits paid 90 5 95 87 5 92
Exchange differences – 1 1 – 4 4
Present value of defined benefit obligations at end of year (1,711) (121) (1,832) (1,826) (133) (1,959)
The present value of UK scheme defined benefit obligations is 52% (2023/24: 50%) in respect of deferred members and 48%
(2023/24: 50%) in respect of current pensioners.
The weighted average duration of the UK scheme obligations at the end of the year is 14 years (2023/24: 15 years).
181Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
28 Post-employment benefits continued
For the UK scheme, the mortality assumptions used for IAS 19 purposes have been selected with regard to the characteristics and
experience of the membership of the scheme as assessed from time to time relating to triennial funding valuations. The base
mortality assumptions have been derived using an analysis of current mortality rates carried out by Club Vita for the Trustee and the
Continuous Mortality Investigation (CMI) life expectancy projection model data published by the UK actuarial profession. The latter
allowance is in line with CMI 2022 improvements subject to a long-term rate of 1.5% p.a. for both males and females. The assumptions
for life expectancy of UK scheme members are as follows:
Years
2024/25
2023/24
Age to which current pensioners are expected to live (60 now)
— Male
85.6
85.6
— Female
88.3
88.3
Age to which future pensioners are expected to live (60 in 15 years’ time)
— Male
86.9
86.9
— Female
90.4
90.4
The following sensitivity analysis for the UK scheme shows the estimated impact on the obligation resulting from changes to key
actuarial assumptions, whilst holding all other assumptions constant.
Assumption
Change in assumption
Impact on defined benefit obligation
Discount rate
Increase/decrease by 0.5%
Decrease/increase by £122m
Price inflation
Increase/decrease by 0.25%
Increase/decrease by £53m
Rate of pension increases
Increase/decrease by 0.25%
Increase/decrease by £50m
Mortality
Increase/decrease in life expectancy by one year
Increase/decrease by £59m
Due to the asset-liability matching investment strategy, the above impacts on the obligations of changes in discount rate and price
inflation would be significantly offset by movements in the fair value of the scheme assets.
29 Share capital
Number of
ordinary shares Ordinary share
millions capital £ millions
Allotted, called up and fully paid:
At 1 February 2024
1,875
294
New shares issued under share schemes
1
–
Purchase of own shares for cancellation
(83)
(12)
At 31 January 2025
1,793
282
At 1 February 2023
1,940
305
New shares issued under share schemes
2
–
Purchase of own shares for cancellation
(67)
(11)
At 31 January 2024
1,875
294
Ordinary shares have a par value of 15
5/7
pence per share and carry full voting, dividend and capital distribution rights.
During the year the Group purchased 83 million (2023/24: 67 million) of the Company’s own shares for cancellation at a cost of £225m
(2023/24: £160m) as part of its capital returns programme.
Other Information
182 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
30 Other reserves
2024/25
Translation Cash flow hedge
£ millions reserve reserve
Other
Total
At 1 February 2024
144
(13)
159
290
Inventory cash flow hedges – fair value gains
–
22
–
22
Tax on items that will not be reclassified subsequently to profit or loss
–
(6)
–
(6)
Currency translation differences
Group
(25)
–
–
(25)
Joint ventures and associates
6
–
–
6
Inventory cash flow hedges – losses transferred to income statement
–
1
–
1
Other comprehensive (expense)/income for the year
(19)
17
–
(2)
Inventory cash flow hedges – losses transferred to inventories
–
15
–
15
Tax on equity items
(1)
(3)
–
(4)
At 31 January 2025
124
16
159
299
2023/24
Translation Cash flow hedge
£ millions reserve reserve
Other
Total
At 1 February 2023
150
(24)
159
285
Inventory cash flow hedges – fair value losses
–
(32)
–
(32)
Tax on items that will not be reclassified subsequently to profit or loss
–
6
–
6
Currency translation differences
Group
(3)
–
–
(3)
Joint ventures and associates
(1)
–
–
(1)
Transferred to income statement
(2)
–
–
(2)
Inventory cash flow hedges – losses transferred to income statement
–
12
–
12
Tax on items that may be reclassified subsequently to profit or loss
–
(2)
–
(2)
Other comprehensive expense for the year
(6)
(16)
–
(22)
Inventory cash flow hedges – losses transferred to inventories
–
33
–
33
Tax on equity items
–
(6)
–
(6)
At 31 January 2024
144
(13)
159
290
The ‘other’ category of reserves represents the premium on the issue of convertible loan stock in 1993 and the merger reserve
relating to the acquisition of Darty in 1993.
31 Share-based payments
2024/25
2023/24
Number of Weighted Number of Weighted
options average options average exercise
thousands exercise price £ thousands price £
Outstanding at beginning of year
71,336
0.46
58,946
0.52
Granted during the year
1
20,810
0.42
25,235
0.45
Forfeited and expired during the year
(14,252)
0.37
(5,470)
1.12
Exercised during the year
(10,298)
0.23
(7,375)
0.45
Outstanding at end of year
67,596
0.50
71,336
0.46
Exercisable at end of year
8,721
0.49
6,854
0.52
1. The weighted average exercise price for options granted during the year represents a blend of nil price Performance Share Plan and Alignment Share awards,
and discounted Sharesave options (see below).
Information on the share schemes is given in note 12 of the Company’s separate financial statements.
Options have been exercised on a regular basis throughout the year. On that basis, the weighted average share price during the year,
rather than at the date of exercise, is £2.63 (2023/24: £2.41). The options outstanding at the end of the year have exercise prices
ranging from nil to £2.75 and a weighted average remaining contractual life of 5.4 years (2023/24: 5.4 years).
The Group recognised a total expense of £20m in the year ended 31 January 2025 (2023/24: £22m) relating to equity-settled share-
based payment transactions.
Notes to the consolidated financial statements continued
28 Post-employment benefits continued
For the UK scheme, the mortality assumptions used for IAS 19 purposes have been selected with regard to the characteristics and
experience of the membership of the scheme as assessed from time to time relating to triennial funding valuations. The base
mortality assumptions have been derived using an analysis of current mortality rates carried out by Club Vita for the Trustee and the
Continuous Mortality Investigation (CMI) life expectancy projection model data published by the UK actuarial profession. The latter
allowance is in line with CMI 2022 improvements subject to a long-term rate of 1.5% p.a. for both males and females. The assumptions
for life expectancy of UK scheme members are as follows:
Years 2024/25 2023/24
Age to which current pensioners are expected to live (60 now)
— Male 85.6 85.6
— Female 88.3 88.3
Age to which future pensioners are expected to live (60 in 15 years’ time)
— Male 86.9 86.9
— Female 90.4 90.4
The following sensitivity analysis for the UK scheme shows the estimated impact on the obligation resulting from changes to key
actuarial assumptions, whilst holding all other assumptions constant.
Assumption Change in assumption Impact on defined benefit obligation
Discount rate Increase/decrease by 0.5% Decrease/increase by £122m
Price inflation Increase/decrease by 0.25% Increase/decrease by £53m
Rate of pension increases Increase/decrease by 0.25% Increase/decrease by £50m
Mortality Increase/decrease in life expectancy by one year Increase/decrease by £59m
Due to the asset-liability matching investment strategy, the above impacts on the obligations of changes in discount rate and price
inflation would be significantly offset by movements in the fair value of the scheme assets.
29 Share capital
Number of
ordinary shares
millions
Ordinary share
capital £ millions
Allotted, called up and fully paid:
At 1 February 2024 1,875 294
New shares issued under share schemes 1 –
Purchase of own shares for cancellation (83) (12)
At 31 January 2025 1,793 282
At 1 February 2023 1,940 305
New shares issued under share schemes 2 –
Purchase of own shares for cancellation (67) (11)
At 31 January 2024 1,875 294
Ordinary shares have a par value of 15
5/7
pence per share and carry full voting, dividend and capital distribution rights.
During the year the Group purchased 83 million (2023/24: 67 million) of the Company’s own shares for cancellation at a cost of £225m
(2023/24: £160m) as part of its capital returns programme.
183Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
31 Share-based payments continued
The fair value of share options and deferred shares is determined by independent valuers using Black-Scholes and stochastic option
pricing models. The inputs of the principal schemes into these models are as follows:
Share price at
Expected life
1
Expected
Date of grant
grant £
Exercise price £
years
volatility
2
%
Dividend yield
3
%
Risk free rate
4
%
Fair value £
Kingfisher Incentive Share
21/04/16
3.61
–
7
–
–
–
3.61
Plan – Deferred Bonus
03/05/17
3.40
–
7
–
–
–
3.40
Awards
23/04/18
3.09
–
7
–
–
–
3.09
24/04/19
2.63
–
7
–
–
–
2.63
Performance Share Plan
24/06/22
2.43
–
10
–
–
–
2.43
21/10/22
2.04
–
10
–
–
–
2.04
20/04/23
2.57
–
10
–
–
–
2.57
18/10/23
2.04
–
10
–
–
–
2.04
25/04/24
2.47
–
10
–
–
–
2.47
17/10/24
3.17
–
10
–
–
–
3.17
UK and International
31/10/17
3.13
2.42
3.5
22.8%
3.4%
0.6%
0.43
Sharesave
31/10/17
3.13
2.42
5.5
22.3%
3.4%
0.8%
0.34
01/11/18
2.62
2.06
3.5
23.2%
4.1%
1.1%
0.33
01/11/18
2.62
2.06
5.5
23.0%
4.1%
0.8%
0.27
01/11/19
2.07
1.59
3.5
25.7%
5.2%
0.4%
0.39
01/11/19
2.07
1.59
5.5
25.1%
5.2%
0.4%
0.35
29/10/20
2.88
2.37
3.5
37.0%
2.8%
0.0%
0.80
29/10/20
2.88
2.37
5.5
32.4%
2.8%
0.0%
0.77
28/10/21
3.31
2.75
3.5
37.4%
3.6%
0.7%
0.88
28/10/21
3.31
2.75
5.5
32.6%
3.6%
0.8%
0.82
28/10/22
2.15
1.77
3.5
38.1%
5.8%
3.3%
0.56
28/10/22
2.15
1.77
5.5
34.0%
5.8%
3.5%
0.53
27/10/23
2.05
1.77
3.5
28.3%
6.1%
4.5%
0.40
27/10/23
2.05
1.77
5.5
34.4%
6.1%
4.3%
0.48
25/10/24
3.10
2.60
3.5
27.9%
4.0%
4.0%
0.75
25/10/24
3.10
2.60
5.5
34.4%
4.0%
4.1%
0.94
Alignment Shares
19/07/16
3.32
–
10
–
–
–
3.32
24/04/17
3.37
–
10
–
–
–
3.37
23/10/17
3.03
–
10
–
–
–
3.03
23/04/18
3.09
–
10
–
–
–
3.09
29/10/18
2.50
–
10
–
–
–
2.50
24/04/19
2.63
–
10
–
–
–
2.55
30/07/19
2.23
–
10
–
–
–
2.04
21/10/19
2.15
–
10
–
–
–
2.05
28/07/20
2.49
–
10
–
–
–
2.38
23/10/20
3.20
–
10
–
–
–
3.20
22/04/21
3.60
–
10
–
–
–
3.46
21/10/21
3.41
–
10
–
–
–
3.41
Transformation Incentive
19/07/16
3.32
–
10
–
–
–
3.32
Delivering Value Incentive
30/07/19
2.24
–
10
–
–
–
1.75
04/05/21
3.57
–
10
–
–
–
3.19
1.
Expected life is disclosed based on the UK schemes. For the Kingfisher Incentive Share Plan scheme in the UK, the expiry date is 7 years from the date of
grant. For the Performance Share Plan, Transformation Incentive award and Alignment Share award the expiry date is 10 years from the date of grant. Expiry
of the overseas Alignment Share award is 3 years from the date of grant.
2.
Expected volatility was determined for each individual award (or relevant components of an award), by calculating the historical volatility of the Group’s share
price (plus reinvested dividends) immediately prior to the grant of the award, over the same period as the vesting period of each award, adjusted by
expectations of future volatility.
3.
As these awards are made under an approved SAYE scheme, option holders cannot be compensated for dividends foregone. As such the historical dividend
yield is used, calculated as dividends announced in the 12 months prior to grant as a percentage of the share price on the date of grant.
4.
Risk free rate was determined for each individual award (or relevant components of an award).
Other Information
184 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
32 Cash generated by operations
£ millions
2024/25
2023/24
Operating profit
407
580
Share of post-tax results of joint ventures and associates
15
1
Depreciation and amortisation
656
641
Net impairment losses
198
87
Loss on disposal of property, plant & equipment and investment property
8
–
Loss/(gain) on disposals of subsidiaries and associates
3
(2)
Lease gains
–
(7)
Share-based compensation charge
20
22
Decrease in inventories
87
132
Decrease/(increase) in trade and other receivables
63
(6)
Decrease in trade and other payables
(50)
(14)
Movement in provisions
9
(3)
Movement in post-employment benefits
(5)
7
Cash generated by operations
1,411
1,438
33 Net debt
£ millions
2024/25
2023/24
Cash and cash equivalents
336
360
Cash and cash equivalents included within assets held for sale
9
–
Bank overdrafts
(9)
(7)
Cash and cash equivalents and bank overdrafts (including cash and cash equivalents held for sale)
336
353
Bank loans
(1)
(3)
Fixed term debt
(99)
(99)
Lease liabilities
(2,211)
(2,367)
Lease liabilities included within assets held for sale
(42)
–
Net financing derivatives
2
–
Net debt (including net debt held for sale)
(2,015)
(2,116)
£ millions
2024/25
2023/24
Net debt at beginning of year
(2,116)
(2,274)
Net (decrease)/increase in cash and cash equivalents and bank overdrafts
(11)
84
Arrangement fees paid
2
–
Net cash flow
1
(9)
84
Movements in lease liabilities
107
71
Exchange differences and other non-cash movements
3
3
Net debt at end of year
(2,015)
(2,116)
1. Refer to the glossary for the definition of net cash flow.
Notes to the consolidated financial statements continued
31 Share-based payments continued
The fair value of share options and deferred shares is determined by independent valuers using Black-Scholes and stochastic option
pricing models. The inputs of the principal schemes into these models are as follows:
Date of grant
Share price at
grant £ Exercise price £
Expected life
1
years
Expected
volatility
2
% Dividend yield
3
% Risk free rate
4
% Fair value £
Kingfisher Incentive Share
Plan – Deferred Bonus
Awards
21/04/16 3.61 – 7 – – – 3.61
03/05/17 3.40 – 7 – – – 3.40
23/04/18 3.09 – 7 – – – 3.09
24/04/19 2.63 – 7 – – – 2.63
Performance Share Plan 24/06/22 2.43 – 10 – – – 2.43
21/10/22 2.04 – 10 – – – 2.04
20/04/23 2.57 – 10 – – – 2.57
18/10/23 2.04 – 10 – – – 2.04
25/04/24 2.47 – 10 – – – 2.47
17/10/24 3.17 – 10 – – – 3.17
UK and International
Sharesave
31/10/17 3.13 2.42 3.5 22.8% 3.4% 0.6% 0.43
31/10/17 3.13 2.42 5.5 22.3% 3.4% 0.8% 0.34
01/11/18 2.62 2.06 3.5 23.2% 4.1% 1.1% 0.33
01/11/18 2.62 2.06 5.5 23.0% 4.1% 0.8% 0.27
01/11/19 2.07 1.59 3.5 25.7% 5.2% 0.4% 0.39
01/11/19 2.07 1.59 5.5 25.1% 5.2% 0.4% 0.35
29/10/20 2.88 2.37 3.5 37.0% 2.8% 0.0% 0.80
29/10/20 2.88 2.37 5.5 32.4% 2.8% 0.0% 0.77
28/10/21 3.31 2.75 3.5 37.4% 3.6% 0.7% 0.88
28/10/21 3.31 2.75 5.5 32.6% 3.6% 0.8% 0.82
28/10/22 2.15 1.77 3.5 38.1% 5.8% 3.3% 0.56
28/10/22 2.15 1.77 5.5 34.0% 5.8% 3.5% 0.53
27/10/23 2.05 1.77 3.5 28.3% 6.1% 4.5% 0.40
27/10/23 2.05 1.77 5.5 34.4% 6.1% 4.3% 0.48
25/10/24 3.10 2.60 3.5 27.9% 4.0% 4.0% 0.75
25/10/24 3.10 2.60 5.5 34.4% 4.0% 4.1% 0.94
Alignment Shares 19/07/16 3.32 – 10 – – – 3.32
24/04/17 3.37 – 10 – – – 3.37
23/10/17 3.03 – 10 – – – 3.03
23/04/18 3.09 – 10 – – – 3.09
29/10/18 2.50 – 10 – – – 2.50
24/04/19 2.63 – 10 – – – 2.55
30/07/19 2.23 – 10 – – – 2.04
21/10/19 2.15 – 10 – – – 2.05
28/07/20 2.49 – 10 – – – 2.38
23/10/20 3.20 – 10 – – – 3.20
22/04/21 3.60 – 10 – – – 3.46
21/10/21 3.41 – 10 – – – 3.41
Transformation Incentive 19/07/16 3.32 – 10 – – – 3.32
Delivering Value Incentive 30/07/19 2.24 – 10 – – – 1.75
04/05/21 3.57 – 10 – – – 3.19
1.
Expected life is disclosed based on the UK schemes. For the Kingfisher Incentive Share Plan scheme in the UK, the expiry date is 7 years from the date of
grant. For the Performance Share Plan, Transformation Incentive award and Alignment Share award the expiry date is 10 years from the date of grant. Expiry
of the overseas Alignment Share award is 3 years from the date of grant.
2.
Expected volatility was determined for each individual award (or relevant components of an award), by calculating the historical volatility of the Group’s share
price (plus reinvested dividends) immediately prior to the grant of the award, over the same period as the vesting period of each award, adjusted by
expectations of future volatility.
3.
As these awards are made under an approved SAYE scheme, option holders cannot be compensated for dividends foregone. As such the historical dividend
yield is used, calculated as dividends announced in the 12 months prior to grant as a percentage of the share price on the date of grant.
4.
Risk free rate was determined for each individual award (or relevant components of an award).
185Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
33 Net debt continued
The table below sets out the movements in liabilities arising from financing activities:
2024/25
Borrowings
(excluding bank Net financing Share purchase Total financing
£ millions overdrafts) derivatives Lease liabilities
obligations
1
liabilities
At 1 February 2024
(102)
–
(2,367)
–
(2,469)
Principal repayments
–
–
387
–
387
Arrangement fees paid
2
–
–
–
2
Shares purchased for cancellation
–
–
–
225
225
Interest paid
7
–
123
–
130
Cash outflow relating to financing liabilities
9
–
510
225
744
Interest charge
(7)
–
(123)
–
(130)
Lease liability additions
–
–
(250)
–
(250)
Transfers to liabilities directly associated with assets held for sale
–
–
42
–
42
Other movements in lease liabilities
2
–
–
(30)
–
(30)
Recognised liability due to share purchase commitments
–
–
–
(251)
(251)
Fair value movements and exchange differences
–
2
7
–
9
At 31 January 2025
(100)
2
(2,211)
(26)
(2,335)
2023/24
Borrowings
(excluding bank Net financing Share purchase Total financing
£ millions overdrafts) derivatives Lease liabilities
obligations
1
liabilities
At 1 February 2023
(102)
2
(2,444)
(7)
(2,551)
Principal repayments
–
–
348
–
348
Shares purchased for cancellation
–
–
–
160
160
Interest paid
7
–
126
–
133
Cash outflow relating to financing liabilities
7
–
474
160
641
Interest charge
(7)
–
(126)
–
(133)
Lease liability additions
–
–
(253)
–
(253)
Other movements in lease liabilities
2
–
–
(26)
–
(26)
Recognised liability due to share purchase commitments
–
–
–
(153)
(153)
Fair value movements and exchange differences
–
(2)
8
–
6
At 31 January 2024
(102)
–
(2,367)
–
(2,469)
1.
Share purchase obligations are not included in the Group’s net debt measure. Refer to the glossary for the definition of net debt.
2.
Other movements principally comprise of amounts in relation to indexation, rent reviews and other changes in lease term and scope.
Other Information
186 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
34 Assets and liabilities held for sale
£ millions
2024/25
2023/24
Assets held for sale
158
3
Liabilities directly associated with assets held for sale
(92)
–
66
3
In December 2024, the Group announced that it had reached an agreement to dispose of its 100% interest in its Brico Dépôt Romania
business. The business’s assets and liabilities were classified as a disposal group held for sale in the current year. Charges of £22m
have been recognised in the year relating to this disposal, principally relating to impairment charges recognised on classification of
the business as held for sale, and other exit costs. The business is presented within the ‘Other International’ combination of segments.
The major classes of assets and liabilities comprising the Romania disposal group classified as held for sale are as follows:
£ millions
Total
Other intangible assets
2
Property, plant & equipment
37
Right-of-use assets
14
Inventories
87
Trade and other receivables
3
Cash and cash equivalents
9
Total assets classified as held for sale
152
Trade and other payables
(48)
Lease liabilities
(40)
Other liabilities
(2)
Total liabilities directly associated with assets held for sale
(90)
Net assets of disposal group
62
Assets held for sale also include £6m freehold properties and right of use assets in Poland. In the prior year, assets held for sale
comprised freehold properties in Poland. Liabilities held for sale include £2m lease liabilities held for sale in Poland.
35 Commitments
Capital commitments contracted but not provided for by the Group at 31 January 2025 amount to £14m (2023/24: £31m).
Notes to the consolidated financial statements continued
33 Net debt continued
The table below sets out the movements in liabilities arising from financing activities:
£ millions
2024/25
Borrowings
(excluding bank
overdrafts)
Net financing
derivatives
Lease liabilities
Share purchase
obligations
1
Total financing
liabilities
At 1 February 2024 (102) – (2,367) – (2,469)
Principal repayments – – 387 – 387
Arrangement fees paid 2 – – – 2
Shares purchased for cancellation – – – 225 225
Interest paid 7 – 123 – 130
Cash outflow relating to financing liabilities 9 – 510 225 744
Interest charge (7) – (123) – (130)
Lease liability additions – – (250) – (250)
Transfers to liabilities directly associated with assets held for sale – – 42 – 42
Other movements in lease liabilities
2
– – (30) – (30)
Recognised liability due to share purchase commitments – – – (251) (251)
Fair value movements and exchange differences – 2 7 – 9
At 31 January 2025 (100) 2 (2,211) (26) (2,335)
£ millions
2023/24
Borrowings
(excluding bank
overdrafts)
Net financing
derivatives
Lease liabilities
Share purchase
obligations
1
Total financing
liabilities
At 1 February 2023 (102) 2 (2,444) (7) (2,551)
Principal repayments – – 348 – 348
Shares purchased for cancellation – – – 160 160
Interest paid 7 – 126 – 133
Cash outflow relating to financing liabilities 7 – 474 160 641
Interest charge (7) – (126) – (133)
Lease liability additions – – (253) – (253)
Other movements in lease liabilities
2
– – (26) – (26)
Recognised liability due to share purchase commitments – – – (153) (153)
Fair value movements and exchange differences – (2) 8 – 6
At 31 January 2024 (102) – (2,367) – (2,469)
1.
Share purchase obligations are not included in the Group’s net debt measure. Refer to the glossary for the definition of net debt.
2.
Other movements principally comprise of amounts in relation to indexation, rent reviews and other changes in lease term and scope.
187Kingfisher 2024/25 Annual Report and Accounts
Notes to the consolidated financial statements continued
36 Contingent liabilities
The Group is subject to claims and litigation arising in the ordinary course of business and provision is made where liabilities are
considered likely to arise on the basis of current information and legal advice.
The Group files tax returns in many jurisdictions around the world and at any one time is subject to periodic tax audits in the ordinary
course of its business. Applicable tax laws and regulations are subject to differing interpretations and the resolution of a final tax
position can take several years to complete. Where it is considered that future tax liabilities are more likely than not to arise, an
appropriate provision is recognised in the financial statements.
Whilst the procedures that must be followed to resolve these types of tax issues make it likely that it will be some years before the
eventual outcome is known, the Group does not currently consider the likelihood of adverse outcomes in relation to these matters
(other than those matters for which liabilities have already been recorded) to be probable.
In October 2017, the European Commission opened a state aid investigation into the Group Financing Exemption section of the UK
Controlled Foreign Company rules. While the Group had complied with the requirements of UK tax law in force at the time, in April
2019 the European Commission concluded that aspects of the UK Controlled Foreign Company regime partially constituted illegal
state aid. In September 2024, the European Court of Justice annulled this decision, and repayment of the tax and interest, totalling
£69m, is expected in 2025/26. At the balance sheet date, the Group is recognising this amount as a current asset (2023/24: £68m
recognised as a non-current asset).
Subsidiary audit exemptions
The following UK subsidiary undertakings are exempt from the requirements of the Companies Act 2006 (the Act) relating to the audit
of individual accounts by virtue of section 479A of the Act:
Company Company Company
Name
number
Name
Number
Name
Number
B&Q Properties Chesterfield Limited
07347750
B&Q Properties Swindon
07156385
Kingfisher Properties
07501852
Limited Investments Limited
B&Q Properties Farnborough Limited
07595097
B&Q Properties Witney
07595124
Kingfisher TMB Limited
03926623
Limited
B&Q Properties Investments Limited
SC389774
B&Q Properties Wrexham
07347678
New England Paint Company
04056989
Limited Limited
B&Q Properties Limited
03885270
Eijsvogel Finance Limited
02792015
Sheldon Poland Investments
08409745
Limited
B&Q Properties New Malden Limited
03926734
Kingfisher France Limited
04213347
Zeus Land Investments Limited
00601220
B&Q Properties South Shields Limited
07156522
Kingfisher Holdings Limited
09404258
B&Q Properties Sutton-In-Ashfield
07594922
Kingfisher International
02558762
Limited Holdings Limited
Kingfisher plc will guarantee all outstanding liabilities that these subsidiaries are subject to as at the financial year ended 31 January 2025
in accordance with section 479C of the Act, as amended by the Companies and Limited Liability Partnerships (Accounts and Audit
Exemptions and Change of Accounting Framework) Regulations 2012.
Other Information
188 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Notes to the consolidated financial statements continued
36 Contingent liabilities
The Group is subject to claims and litigation arising in the ordinary course of business and provision is made where liabilities are
considered likely to arise on the basis of current information and legal advice.
The Group files tax returns in many jurisdictions around the world and at any one time is subject to periodic tax audits in the ordinary
course of its business. Applicable tax laws and regulations are subject to differing interpretations and the resolution of a final tax
position can take several years to complete. Where it is considered that future tax liabilities are more likely than not to arise, an
appropriate provision is recognised in the financial statements.
Whilst the procedures that must be followed to resolve these types of tax issues make it likely that it will be some years before the
eventual outcome is known, the Group does not currently consider the likelihood of adverse outcomes in relation to these matters
(other than those matters for which liabilities have already been recorded) to be probable.
In October 2017, the European Commission opened a state aid investigation into the Group Financing Exemption section of the UK
Controlled Foreign Company rules. While the Group had complied with the requirements of UK tax law in force at the time, in April
2019 the European Commission concluded that aspects of the UK Controlled Foreign Company regime partially constituted illegal
state aid. In September 2024, the European Court of Justice annulled this decision, and repayment of the tax and interest, totalling
£69m, is expected in 2025/26. At the balance sheet date, the Group is recognising this amount as a current asset (2023/24: £68m
recognised as a non-current asset).
Subsidiary audit exemptions
The following UK subsidiary undertakings are exempt from the requirements of the Companies Act 2006 (the Act) relating to the audit
of individual accounts by virtue of section 479A of the Act:
Name
Company
number Name
Company
Number Name
Company
Number
B&Q Properties Chesterfield Limited 07347750 B&Q Properties Swindon
Limited
07156385 Kingfisher Properties
Investments Limited
07501852
B&Q Properties Farnborough Limited 07595097 B&Q Properties Witney
Limited
07595124 Kingfisher TMB Limited 03926623
B&Q Properties Investments Limited SC389774 B&Q Properties Wrexham
Limited
07347678 New England Paint Company
Limited
04056989
B&Q Properties Limited 03885270 Eijsvogel Finance Limited 02792015 Sheldon Poland Investments
Limited
08409745
B&Q Properties New Malden Limited 03926734 Kingfisher France Limited 04213347 Zeus Land Investments Limited 00601220
B&Q Properties South Shields Limited 07156522 Kingfisher Holdings Limited 09404258
B&Q Properties Sutton-In-Ashfield
Limited
07594922 Kingfisher International
Holdings Limited
02558762
Kingfisher plc will guarantee all outstanding liabilities that these subsidiaries are subject to as at the financial year ended 31 January 2025
in accordance with section 479C of the Act, as amended by the Companies and Limited Liability Partnerships (Accounts and Audit
Exemptions and Change of Accounting Framework) Regulations 2012.
37 Related party transactions
During the year, the Group carried out a number of transactions with related parties in the normal course of business and on an arm’s
length basis. The names of the related parties, the nature of these transactions and their total value are shown below:
2024/25
2023/24
£ millions
Income
Receivable
Income
Receivable
Transactions with Koçtaş Yap Marketleri Ticaret A.Ş. in which the Group
holds a 50% interest
Commission and other income
0.6
0.2
0.5
–
Transactions with Crealfi S.A. in which the Group held a 49% interest
1
Provision of employee services
–
–
0.1
–
Commission and other income
–
–
1.5
–
Transactions with the Kingfisher Pension Scheme
Provision of administrative services
0.8
0.6
0.8
0.2
1. Crealfi S.A. was disposed of in the prior year.
In addition to the above arm’s length transactions, during the year the Group made capital contributions totalling £19m into the Koçtaş
joint venture. Refer to note 18 for further information.
Services are usually negotiated with related parties on a cost-plus basis. Goods are sold or bought on the basis of the price lists in
force with non-related parties.
The remuneration of key management personnel is given in note 9.
Other transactions with the Kingfisher Pension Scheme are detailed in note 28.
38 Post balance sheet events
During the period since the balance sheet date, the Group purchased 10 million of the Company’s own shares for cancellation at a
cost of £26m. This amount was deducted from equity in 2024/25 as a result of an irrevocable buyback agreement which was in place
at 31 January 2025.
189Kingfisher 2024/25 Annual Report and Accounts
Company balance sheet
At 31 January 2025
£ millions Notes 2024/25 2023/24
Non-current assets
Property, plant and equipment 6 7
Right-of-use assets 4 10 12
Investment in subsidiary 5 6,825 6,829
Trade and other receivables 6 3,268 2,974
Post-employment benefits 10 9 9
Deferred tax assets 5 8
10,123 9,839
Current assets
Trade and other receivables 6 62 46
Derivative assets 9 3 –
Current tax assets 91 84
Cash and cash equivalents 111 113
267 243
Total assets 10,390 10,082
Current liabilities
Trade and other payables 7 (5,584) (5,234)
Borrowings 8 (99) –
Lease liabilities 4 (2) –
(5,685) (5,234)
Net current liabilities (5,418) (4,991)
Total assets less current liabilities 4,705 4,848
Non-current liabilities
Borrowings 8 – (99)
Lease liabilities 4 (12) (13)
(12) (112)
Total liabilities (5,697) (5,346)
Net assets 4,693 4,736
Equity
Share capital 11 282 294
Share premium 2,228 2,228
Own shares held in ESOP trust (34) (31)
Retained earnings 1,412 1,452
Capital redemption reserve 94 82
Other reserves 711 711
Total equity 4,693 4,736
The Company’s profit for the year was £437m (2023/24: £55m loss).
The financial statements of Kingfisher plc (company number 01664812) were approved by the Board of Directors on 24 March 2025
and signed on its behalf by:
Thierry Garnier Bhavesh Mistry
Chief Executive Officer Chief Financial Officer
Other Information
190 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Company balance sheet
At 31 January 2025
£ millions Notes 2024/25 2023/24
Non-current assets
Property, plant and equipment 6 7
Right-of-use assets 4 10 12
Investment in subsidiary 5 6,825 6,829
Trade and other receivables 6 3,268 2,974
Post-employment benefits 10 9 9
Deferred tax assets 5 8
10,123 9,839
Current assets
Trade and other receivables 6 62 46
Derivative assets 9 3 –
Current tax assets 91 84
Cash and cash equivalents 111 113
267 243
Total assets 10,390 10,082
Current liabilities
Trade and other payables 7 (5,584) (5,234)
Borrowings 8 (99) –
Lease liabilities 4 (2) –
(5,685) (5,234)
Net current liabilities (5,418) (4,991)
Total assets less current liabilities 4,705 4,848
Non-current liabilities
Borrowings 8 – (99)
Lease liabilities 4 (12) (13)
(12) (112)
Total liabilities (5,697) (5,346)
Net assets 4,693 4,736
Equity
Share capital 11 282 294
Share premium 2,228 2,228
Own shares held in ESOP trust (34) (31)
Retained earnings 1,412 1,452
Capital redemption reserve 94 82
Other reserves 711 711
Total equity 4,693 4,736
The Company’s profit for the year was £437m (2023/24: £55m loss).
The financial statements of Kingfisher plc (company number 01664812) were approved by the Board of Directors on 24 March 2025
and signed on its behalf by:
Thierry Garnier Bhavesh Mistry
Chief Executive Officer Chief Financial Officer
Company statement of changes in equity
Year ended 31 January 2025
2024/25
£ millions Notes
Share
capital
(note 11)
Share
premium
Own
shares
held
1
Retained
earnings
Capital
redemption
reserve
2
Other
reserves
3
Total
equity
At 1 February 2024 294 2,228 (31) 1,452 82 711 4,736
Profit for the year – – – 437 – – 437
Total comprehensive income for the year – – – 437 – – 437
Share-based compensation 12
– – – 5 – – 5
Capital contributions given relating to share-
based payments
–
–
– 16
–
–
16
New shares issued under share schemes
– – – 2 – – 2
Own shares issued under share schemes
– – 23 (23) – – –
Purchase of own shares for cancellation
(12) – – (251) 12 – (251)
Purchase of own shares for ESOP trust
– – (26) – – – (26)
Dividends
– – – (228) – – (228)
Tax on equity items
– – – 2 – – 2
At 31 January 2025
282 2,228 (34) 1,412 94 711 4,693
2023/24
£ millions Notes
Share
capital
(note 11)
Share
premium
Own
shares
held
1
Retained
earnings
Capital
redemption
reserve
2
Other
reserves
3
Total
equity
At 1 February 2023 305 2,228 (22) 1,886 71 711 5,179
Loss for the year – – – (55) – – (55)
Other comprehensive expense for the year – – – (1) – – (1)
Total comprehensive expense for the year – – – (56) – – (56)
Share-based compensation 12
– – – 5 – – 5
Capital contributions given relating to share-
based payments
– – – 16 – – 16
New shares issued under share schemes
– – – 4 – – 4
Own shares issued under share schemes
– – 15 (15) – – –
Purchase of own shares for cancellation
(11) – – (153) 11 – (153)
Purchase of own shares for ESOP trust
– – (24) – – – (24)
Dividends
– – – (237) – – (237)
Tax on equity items
– – – 2 – – 2
At 31 January 2024
294 2,228 (31) 1,452 82 711 4,736
1. The own shares held relate to shares held by the Employee Share Ownership Plan Trust.
2. The capital redemption reserve relates to amounts transferred from share capital on repurchase of issued shares which are subsequently cancelled.
3. The other reserves represent the premium on the issue of convertible loan stock in 1993 and the merger reserve relating to the acquisition of Darty in 1993.
191Kingfisher 2024/25 Annual Report and Accounts
Notes to the Company financial statements
1 General information
The Company is a public company limited by shares and
incorporated in England and Wales, United Kingdom, and is listed
on the London Stock Exchange. The Company is non-trading
and is the ultimate parent of the Kingfisher plc group (‘the
Group’). The nature of the Group’s operations and its principal
activities are set out in the Strategic Report on pages 2 to 68.
The address of its registered office is 1 Paddington Square,
London, W2 1GG. A full list of related undertakings of the
Company and their registered offices is given in note 14.
2 Material accounting policies
The financial statements of Kingfisher plc (‘the Company’) are
for the year ended 31 January 2025 (‘the year’ or ‘2024/25’) and
were authorised for issue by the Board of Directors on 24 March
2025. The comparative financial year is the year ended
31 January 2024 (‘the prior year’ or ‘2023/24’).
The directors of Kingfisher plc consider that adequate resources
exist for the Company to continue in operational existence for the
foreseeable future and they continue to adopt the going concern
basis in preparing the financial statements for the year ended 31
January 2025. Refer to note 2a of the consolidated financial
statements for details of the Directors’ assessment.
The Company meets the definition of a qualifying entity under
Financial Reporting Standard 100 and as such these financial
statements have been prepared in accordance with Financial
Reporting Standard 101 Reduced Disclosure Framework (‘FRS 101’) and
the provisions of the Companies Act 2006. The financial statements
have been prepared under the historical cost convention, as modified
by the use of valuations for certain financial instruments, share-based
payments and post-employment benefits.
As permitted by section 408 of the Companies Act 2006, the
income statement of the Company has not been presented.
The Company has taken advantage of the following disclosure
exemptions under FRS 101:
— the requirements of paragraphs 45(b) and 46 to 52 of IFRS 2
‘Share-based Payment’;
— the requirements of IFRS 7 ‘Financial Instruments:
Disclosures’;
— the requirements of paragraphs 91 to 99 of IFRS 13
‘Fair Value Measurement’;
— the requirement in paragraph 38 of IAS 1 ‘Presentation of
Financial Statements’ to present comparative information in
respect of:
— paragraph 73(e) of IAS 16 Property, Plant and Equipment;
— the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B,
38C, 38D, 40A, 40B, 40C, 40D, 111 and 134 to 136 of IAS 1
‘Presentation of Financial Statements’;
— the requirements of IAS 7 ‘Statement of Cash Flows’;
— the requirements of paragraphs 30 and 31 of IAS 8 ‘Accounting
Policies, Changes in Accounting Estimates and Error’;
— the requirements of paragraphs 17 and 18A of IAS 24
‘Related Party Disclosures’;
— the requirements in IAS 24 ‘Related Party Disclosures’ to
disclose related party transactions entered into between
two or more members of a group, provided that any
subsidiary which is a party to the transaction is wholly
owned by such a member; and
— the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d) to
134(f) and 135(c) to 135(e) of IAS 36 ‘Impairment of Assets’.
Where required, equivalent disclosures are given in the
consolidated financial statements of Kingfisher plc.
The material accounting policies applied in the preparation of
these financial statements are set out below. These policies
have been consistently applied to the years presented.
Changes to accounting policies as a result of new
standards issued and effective
Changes to accounting policies as a result of new standards
issued and effective do not have a material impact on the
Company’s financial statements.
a. Foreign currencies
Monetary assets and liabilities denominated in foreign currencies
are translated into Sterling at the rates of exchange at the
balance sheet date. Exchange differences on monetary items
are taken to the income statement.
Principal rates of exchange against Sterling:
2024/25
Year end rate
2023/24
Year end rate
Euro 1.20 1.17
US Dollar 1.24 1.27
Polish Zloty 5.04 5.08
The financial statements are presented in Sterling, which is the
Company’s presentation currency and the currency of the primary
economic environment in which the entity operates (i.e. its
functional currency).
b. Leased assets
The Company assesses whether a contract is or contains a
lease at inception of the contract. Typically, lease contracts
relate to properties such as the Company’s Head Office. For
leases in which the Company is a lessee, the Company
recognises a right-of-use asset and a lease liability, except for
short-term leases (defined as leases with a lease term of 12
months or less) and leases of low value assets.
The liability is initially measured at the present value of the lease
payments not yet paid at the commencement date, discounted at an
appropriate discount rate. Where the implicit rate in the lease is not
readily determinable, an incremental borrowing rate is calculated and
applied. The calculation methodology is based upon applying a
financing spread to a risk-free rate, with the resulting rate including the
effect of the creditworthiness of the Company, as well as the
underlying term, currency and start date of the lease agreement.
Lease payments used in the measurement of the lease liability
principally comprise fixed lease payments (subject to
indexation/rent reviews) less any incentives. The lease liability
is subsequently measured using an effective interest method
whereby the carrying amount of the lease liability is measured
on an amortised cost basis, and the interest expense is allocated
over the lease term. The lease term comprises the non-
cancellable lease term, in addition to optional periods when the
Company is reasonably certain to exercise an option to extend
(or not to terminate) a lease.
Other Information
192 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
The Company remeasures the lease liability and makes a
corresponding adjustment to the related right-of-use asset
whenever an event occurs that changes the term or payment
profile of a lease, such as the renewal of an existing lease,
the exercise of lease term options, market rent reviews
and indexation.
The right-of-use assets are initially measured at the amount
equal to the lease liability, adjusted by any upfront lease
payments or incentives and any initial direct costs incurred.
Subsequently, the assets are measured at cost less
accumulated depreciation and impairment losses. Right-of-use
assets are depreciated over the useful economic life of the
assets which is determined to be the lease term.
c. Investments
Investments in subsidiaries are included in the balance sheet at
cost, less any provisions for impairment. The Company tests the
investment balance for impairment annually or when there is an
indicator of impairment. The recoverable amount is assessed by
reference to the present value of expected future cash flows
(‘value-in-use’), based on the Group’s most recent Board
approved plans. Where the recoverable amount is less than the
carrying amount of the investment, an impairment loss is
recognised in the income statement.
d. Employee benefits
(i) Post-employment benefits
The Company operates defined benefit and defined contribution
pension schemes for its employees. A defined benefit scheme
is a pension scheme which defines an amount of pension benefit
which an employee will receive on retirement. A defined
contribution scheme is a pension scheme under which the
Company usually pays fixed contributions into a separate
entity. In all cases a separate fund is being accumulated to
meet the accruing liabilities. The assets of each of these funds
are held under trusts and are entirely separate from the
Company’s assets.
The asset or liability recognised in the balance sheet in respect
of defined benefit pension schemes is the fair value of scheme
assets less the present value of the defined benefit obligation
at the balance sheet date. The defined benefit obligation is
calculated annually by independent actuaries using the
projected unit credit method. The present value of the defined
benefit obligation is determined by discounting the estimated
future cash outflows using interest rates of high-quality
corporate bonds which are denominated in the currency in
which the benefits will be paid and which have terms to maturity
approximating to the terms of the related pension liability.
Remeasurement gains and losses arising from experience
adjustments and changes in actuarial assumptions are credited
or charged to other comprehensive income as they arise.
For defined contribution schemes, the Company has no further
payment obligations once the contributions have been paid.
The contributions are recognised as an employee benefit
expense when they are due.
(ii) Share-based compensation
The Company operates several equity-settled, share-based
compensation schemes. The fair value of the employee
services received in exchange for the grant of options or deferred
shares is recognised as an expense and is calculated using Black-
Scholes and stochastic models. The total amount to be expensed
over the vesting period is determined by reference to the fair value of
the options or deferred shares granted, excluding the impact of any
non-market vesting conditions. The value of the charge is adjusted to
reflect expected and actual levels of options vesting due to non-
market vesting conditions.
The fair value of the compensation given to subsidiaries in
respect of share-based compensation schemes is recognised
as a capital contribution over the vesting period. The capital
contribution is reduced by any payments received from
subsidiaries in respect of these schemes.
(iii) Employee Share Ownership Plan trust (‘ESOP trust’)
The ESOP trust is a separately administered discretionary trust.
Liabilities of the ESOP trust are guaranteed by the Company and the
assets of the ESOP trust mainly comprise shares in the Company.
Own shares held by the ESOP trust are deducted from equity and the
shares are held at historical cost until they are sold. The assets,
liabilities, income and costs of the ESOP trust are included in both the
Company’s and the consolidated financial statements.
e. Taxation
The tax currently payable or receivable is based on taxable
profit or loss for the year.
Taxable profit differs from profit before taxation as reported in
the income statement because it excludes items of income or
expense which are taxable or deductible in other years or which
are never taxable or deductible.
Deferred tax is the tax expected to be payable or recoverable
on differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax
bases used in the computation of taxable profit, and is
accounted for using the balance sheet liability method.
Deferred tax liabilities are generally recognised for all taxable
temporary differences. Deferred tax assets are recognised to
the extent that it is probable that taxable profits will be available
against which deductible temporary differences or unused tax
losses can be utilised. Deferred tax assets and liabilities are not
generally recognised if the temporary difference arises from
the initial recognition (other than in a business combination) of
other assets and liabilities in a transaction which affects neither
the taxable profit nor the accounting profit. Deferred tax
liabilities are recognised for taxable temporary differences
arising on investments in subsidiaries, joint ventures and
associates, except where the Company is able to control the
reversal of the temporary difference and it is probable that the
temporary difference will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each
balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profits will be available to allow all
or part of the asset to be recovered.
Current and deferred tax are calculated using tax rates which
have been enacted or substantively enacted by the balance
sheet date and are expected to apply in the period when the
liability is settled or the asset is realised.
193Kingfisher 2024/25 Annual Report and Accounts
Notes to the Company financial statements continued
2 Material accounting policies continued
e. Taxation continued
Current and deferred tax are charged or credited to the income
statement, except when they relate to items charged or
credited directly to equity, in which case the current or deferred
tax is also recognised directly in equity.
f. Financial instruments
Financial assets and financial liabilities are recognised on the
Company’s balance sheet when the Company becomes a party
to the contractual provisions of the instrument. Financial assets
are derecognised when the contractual rights to the cash flows
from the financial asset expire or the Company has substantially
transferred the risks and rewards of ownership. Financial
liabilities (or a part of a financial liability) are derecognised when
the obligation specified in the contract is discharged or
cancelled or expires.
Financial assets and liabilities are offset only when the Group
has a currently enforceable legal right to set-off the respective
recognised amounts and intends either to settle on a net basis,
or to realise the asset and settle the liability simultaneously.
The Company has a number of term loans with its group entities.
These loans are denominated in Sterling and Euro and are priced
to SONIA and ESTR respectively.
(i) Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held on
call with banks and other short-term highly liquid investments
that are readily convertible to a known amount of cash, are
subject to insignificant risk of changes in value and which have
original maturities of three months or less. Cash and cash
equivalents are held for the purpose of meeting short-term cash
commitments rather than for investment or other purposes.
(ii) Borrowings
Interest bearing borrowings are recorded at fair value (which is typically
equivalent to the proceeds received) net of direct issue costs and
subsequently measured at amortised cost. Where borrowings are in
designated and effective fair value hedge relationships, adjustments are
made to their carrying amounts to reflect the hedged risks. Finance
charges, including premiums payable on settlement or redemption and
direct issue costs, are amortised to the income statement using the
effective interest method.
(iii) Trade receivables
Trade receivables are initially recognised at their transaction
price and are subsequently measured at amortised cost less any
allowance for expected credit losses. Amounts owed by Group
companies are recorded as non-current unless there is an
expectation that they will be received within 12 months.
(iv) Trade payables
Trade payables are initially recognised at fair value and are
subsequently measured at amortised cost.
(v) Derivatives and hedge accounting
Where hedge accounting is not applied, or to the extent to which
it is not effective, changes in the fair value of derivatives are
recognised in the income statement as they arise.
Derivatives are initially recorded at fair value on the date a
derivative contract is entered into and are subsequently carried
at fair value. The accounting treatment of derivatives and other
financial instruments classified as hedges depends on their
designation, which occurs at the start of the hedge relationship.
The Company designates certain derivatives as a hedge of the
fair value of an asset or liability (‘fair value hedge’).
For an effective hedge of an exposure to changes in fair value,
the hedged item is adjusted for changes in fair value attributable
to the risk being hedged, with the corresponding entry being
recorded in the income statement.
In order to qualify for hedge accounting, the Company documents in
advance the risk management objective and strategy for undertaking
the hedge and the relationship between the item being hedged and
the hedging instrument. The Company also documents and
demonstrates an assessment of the relationship between the hedged
item and the hedging instrument, which shows that the hedge will be
highly effective on an ongoing basis and provides an analysis of the
sources of hedge ineffectiveness. The effectiveness testing is
performed at half year and year end or upon a significant change in
circumstances affecting the hedge effectiveness requirements.
Hedge accounting is discontinued when the hedging instrument
expires or is sold, terminated or exercised, or no longer qualifies
for hedge accounting. The fair value adjustment to the carrying
amount of the hedged item arising from the hedged risk is
amortised to profit or loss from that date. Amortisation is based
on recalculated effective interest rate.
The company does not have any cash flow hedging instruments.
g. Dividends
Interim dividends are recognised when they are paid to the
Company’s shareholders. Final dividends are recognised when
they are approved by the Company’s shareholders.
h. Share repurchases
Shares purchased for cancellation are deducted from retained
earnings. The Group uses irrevocable closed period buyback
programmes. A liability to purchase shares is recognised at
inception of the programme with any subsequent reduction in the
obligation credited back to retained earnings at the end of the
programme. Share capital is reduced and credited to the capital
redemption reserve, maintaining non-distributable reserves.
Critical accounting judgements and key sources
of estimation uncertainty
The preparation of the Company financial statements requires
the Company to make estimates and assumptions that affect
the application of policies and reported amounts. Estimates and
judgements are continually evaluated and are based on historical
experience and other factors including expectations of future
events that are believed to be reasonable under the
circumstances. Actual results may differ from these estimates.
There have been no critical accounting judgements made by
the Directors or key sources of estimation uncertainty identified
during the year.
Other Information
194 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
3 Income statement disclosures
The audit fee for the Company and the consolidated financial statements is disclosed in note 8 of the Kingfisher plc consolidated financial
statements. Fees payable to Deloitte LLP and their associates for audit and non-audit services to the Company are not required to be
disclosed because the Group financial statements disclose such fees on a consolidated basis. Details of the Company’s policy on the use
of auditors for non-audit services, the reasons why the auditor was used rather than another supplier, and how the auditor’s
independence and objectivity were safeguarded are set out in the Audit Committee report on pages 83 to 87.
Dividend disclosures are provided in note 12 to the Kingfisher plc consolidated financial statements.
£ millions 2024/25 2023/24
Wages and salaries 38 36
Social security costs 5 5
Post-employment benefits – defined contribution 3 3
Share-based compensation 5 5
Employee benefit expenses 51 49
Number 2024/25 2023/24
Average number of persons employed
Administration 306 306
Directors’ remuneration and details of share option exercises are disclosed in the Directors’ Remuneration report on pages 88 to 119.
Total Directors’ remuneration for the year is £5m (2023/24: £9m). Refer to note 9 of the consolidated financial statements for details of the
directors remuneration as defined under Paragraph 1 of Schedule 5 to the Accounting Regulations.
As permitted by s408 of Companies Act 2006, no separate income statement or statement of comprehensive income is presented in
respect of the parent Company. The profit attributable to the Company is disclosed in the footnote to the Company’s balance sheet.
4 Leases
The Company is a lessee of office space.
Right-of-use assets
£ millions 2024/25 2023/24
Land and buildings 10 12
Net carrying amount 10 12
Additions to right-of-use assets during the year were £nil (2023/24: £nil).
Amounts included in profit and loss
£ millions 2024/25 2023/24
Depreciation of right-of-use assets
Land and buildings (2) (1)
Other lease disclosures
There are no lease arrangements under which rental payments are contingent upon sales, other performance or usage.
There are no corporate restrictions imposed by lease arrangements such as those concerning dividends, additional debt and
further leasing.
Lease liabilities
£ millions 2024/25 2023/24
Current (2) –
Non-current (12) (13)
(14) (13)
195Kingfisher 2024/25 Annual Report and Accounts
Notes to the Company financial statements continued
5 Investments
£ millions
Investments in
subsidiaries
At 1 February 2024 6,829
Capital contributions given relating to share-based payments 16
Contributions received relating to share-based payments (20)
At 31 January 2025 6,825
The Company’s investments in subsidiaries are principally comprised of its investment in Kingfisher Holdings Limited, which is an
intermediate holding company for the remainder of the subsidiaries, joint ventures and associates of the Kingfisher Group. At each
reporting date, an assessment is performed as to whether there are any indicators that the Company’s investment may be impaired and,
should such indicators exist, the recoverable amount is estimated. At the balance sheet date, the Company’s market capitalisation was less
than the carrying amount of its investments, which is an indicator of impairment.
An impairment review has been performed for the Company’s investment with no resulting impairments. As an intermediate holding
company for the Kingfisher Group, the Company’s subsidiary investment is supported by the continuing value-in-use of the Group as
a whole and the Company continues to have significant headroom above the carrying amount of the investment as a result. The
Board has reviewed a sensitivity analysis and does not consider that a reasonably possible change in the assumptions used in the
value-in-use calculations would cause the carrying amount of the Company’s investment to exceed the recoverable amount. See
note 13 to the consolidated financial statements for further details on the assumptions used.
6 Trade and other receivables
£ millions 2024/25 2023/24
Non-current
Owed by Group undertakings
3,268 2,974
3,268 2,974
Current
Owed by Group undertakings 62 46
62 46
Trade and other receivables 3,330 3,020
Amounts owed by Group undertakings are repayable on demand and any interest due thereon is at current market rates. The amounts
owed are not secured with collateral or guarantees. The Company has intercompany term loan receivables from Group undertakings of
£84m (2023/24: £nil) and £58m (2023/24: £nil). The £84m intercompany loan matures on 30 June 2025 and is priced to 4.03% interest.
The intention is for this loan to be extended at its maturity date and it has been recorded as a non-current receivable as a result. The £58m
intercompany loan is priced to 6.95% interest and is expected to be settled within 12 months of the balance sheet date therefore has been
recorded as a current asset.
Amounts owed by subsidiary undertakings have been considered for impairment using the 12 months expected credit loss model because
there have been no changes in credit risk since initial recognition. The expected credit losses on amounts owed by Group undertakings
is £nil (2023/24: £nil).
7 Trade and other payables
£ millions 2024/25 2023/24
Current
Owed to Group undertakings 5,521 5,204
Other taxation and social security 5 5
Share repurchase obligations 26 –
Accruals 25 23
Other payables 7 2
5,584 5,234
The share repurchase obligations relate to a liability arising under an irrevocable closed season buyback of the Company’s own shares.
Amounts owed to Group undertakings are repayable on demand and any interest due thereon is at current market rates. The amounts
owed are not secured with collateral or guarantees.
Other Information
196 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
8 Borrowings
£ millions 2024/25 2023/24
Non-current
Fixed term debt – 99
– 99
Current
Fixed term debt 99 –
99 –
Borrowings 99 99
The fixed term debt represents two GBP term loans maturing in June 2025 and January 2026.
See notes 23 and 33 to the consolidated financial statements for further details.
9 Derivatives
The fair value of derivatives at the balance sheet date is:
£ millions 2024/25 2023/24
Foreign exchange contracts 3 –
Derivative assets 3 –
The fair values are calculated by discounting future cash flows arising from the instruments and adjusted for credit risk. These fair value
measurements are all made using observable market rates of interest, foreign exchange and credit risk.
10 Post-employment benefits
The Company participates in both a funded defined benefit scheme and a funded defined contribution scheme.
Defined contribution scheme
Pension costs for the defined contribution scheme, at rates specified in the scheme’s rules, are as follows:
£ millions 2024/25 2023/24
Charge to operating profit 3 3
From July 2012, an enhanced defined contribution scheme was offered to all Company employees. Eligible Company employees have
been automatically enrolled into the defined contribution scheme since 31 March 2013.
Defined benefit scheme
Kingfisher plc is one of a number of Group companies that participate in the Kingfisher Pension Scheme, and therefore the Company
has accounted for its share of the scheme assets and liabilities. The Group’s policy is for each entity to recognise its share of assets
and liabilities based on the proportion of the scheme contributions payable by that entity. The valuation of the scheme has been
based on the most recent full actuarial valuation as at 31 March 2022. Following this valuation and in accordance with the scheme’s
Statement of Funding Principles, the Trustee and Kingfisher agreed to cease annual employer contributions during the period from
August 2022 to July 2025. See note 28 to the consolidated financial statements for further detail on the Kingfisher Pension Scheme.
The final salary pension scheme was closed to future benefit accrual with effect from July 2012.
The Trust Deed provides Kingfisher with an unconditional right to a refund of surplus assets assuming the full settlement of plan
liabilities in the event of a plan wind-up. Furthermore, in the ordinary course of business the Trustee has no rights to unilaterally wind
up, or otherwise augment the benefits due to members of, the scheme. Based on these rights, any net surplus in the scheme is
recognised in full.
In 2010/11 and 2011/12 the Company entered into two phases of a property partnership arrangement with the scheme Trustee to
address an element of the scheme deficit. Further details on this arrangement are given in note 28 to the consolidated financial
statements. The reported pension position reflects the Company’s share of the resulting scheme asset.
197Kingfisher 2024/25 Annual Report and Accounts
Notes to the Company financial statements continued
10 Post-employment benefits continued
Balance sheet
Movements in the present value of the defined benefit obligation and the fair value of scheme assets are as follows:
£ millions
Defined benefit
obligation
Scheme assets Total
At 1 February 2024 (53) 62 9
Interest (expense)/income (3) 3 –
Remeasurement gains/(losses)
1
4 (4) –
Benefits paid 3 (3) –
At 31 January 2025 (49) 58 9
At 1 February 2023 (58) 68 10
Interest (expense)/income (3) 3 –
Remeasurement gains/(losses)
1
5 (6) (1)
Benefits paid 3 (3) –
At 31 January 2024 (53) 62 9
1. Remeasurement gains/(losses) are recognised in Other Comprehensive Income (net of related deferred tax).
The fair value of scheme assets is analysed as follows:
£ millions 2024/25 2023/24
Equities – 1
Government and corporate bonds 29 31
Annuities 22 23
Cash and other 7 7
Total fair value of scheme assets 58 62
11 Called up share capital
Number of
ordinary shares
millions
Ordinary
share capital
£ millions
Allotted, called up and fully paid:
At 1 February 2024 1,875 294
New shares issued under share schemes 1 –
Purchase of own shares for cancellation (83) (12)
At 31 January 2025 1,793 282
At 1 February 2023 1,940 305
New shares issued under share schemes 2 –
Purchase of own shares for cancellation (67) (11)
At 31 January 2024 1,875 294
Ordinary shares have a par value of 15
5/7
pence per share and carry full voting, dividend and capital distribution rights.
During the year, the Company purchased 83 million (2023/24: 67 million) of the Company’s own shares for cancellation at a cost of
£225m (2023/24: £160m) as part of its capital returns programme.
Other Information
198 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
12 Share-based payments
The Company operates a number of share incentive plans including the Performance Share Plan (‘PSP’), Kingfisher Alignment Share
and Transformation Incentive Plan (‘KASTIP’), Kingfisher Incentive Share Plan (‘KISP’), and Sharesave plans in the UK and Ireland.
Options have been exercised on a regular basis throughout the year. On that basis, the weighted average share price during the year,
rather than at the date of exercise, is £2.63 (2023/24: £2.41). The options outstanding at the end of the year have exercise prices
ranging from nil to £2.75 and a weighted average remaining contractual life of 7.1 years (2023/24: 6.9 years).
In the current year, the Company recognised a total expense of £5m (2023/24: £5m) relating to equity-settled share-based
payment transactions.
The Executive Directors’ awards are disclosed in the Directors’ Remuneration report on pages 88 to 119. The KASTIP awards are
described as part of the Directors’ Remuneration Report.
PSP awards are based on service and performance conditions over a three-year period. The KASTIP was granted based on a
three-year service condition. Under the KISP, share awards are deferred for three years. The awards are granted as nil cost options.
Vesting dates may vary according to individual grants.
Under the UK Sharesave scheme, eligible UK employees have been invited to enter into HMRC-approved savings contracts for
a period of three or five years, whereby shares may be acquired with savings under the contract. The option price is the average
market price over three days shortly before the invitation to subscribe, discounted by 20%. Options are exercisable within a six-
month period from the conclusion of a three- or five-year period. The Irish Sharesave plan, which operates along similar lines to the
UK Sharesave scheme, includes eligible employees in the Republic of Ireland.
The rules of all schemes include provision for the early exercise of options in certain circumstances.
The Employee Share Ownership Plan trust (‘ESOP trust’)
The ESOP trust is funded by an interest-free loan from the Company of £79m (2023/24: £83m) to enable it to acquire shares in
Kingfisher plc. The shares are used to satisfy options awarded under the PSP, Delivering Value Incentive award, Transformation
Incentive Award, Alignment Share award and KISP.
The ESOP trust’s shareholding at 31 January 2025 is 12 million shares (2023/24: 10 million shares) with a nominal value of £2m
(2023/24: £2m) and a market value of £29m (2023/24: £23m). Dividends on these shares were waived for the interim and
final dividends.
13 Related party transactions
During the year, the Company carried out a number of transactions with related parties in the normal course of business and on
an arm’s length basis. The names of the related parties, the nature of these transactions and their total value are shown below:
2024/25
2023/24
£ millions Income Receivable at year end Income Receivable at year end
Transactions with Koçtaş Yap Marketleri Ticaret A.Ş. in which the Kingfisher
plc Group holds a 50% interest
Commission and other income 0.6 0.2 0.5 –
Transactions with the Kingfisher Pension Scheme
Provision of administrative services 0.8 0.6 0.8 0.2
Services are usually negotiated with related parties on a cost-plus basis. Goods are sold or bought on the basis of the price lists in force
with non-related parties. Directors’ remuneration and details of share option exercises are disclosed in the Directors’ Remuneration report
on pages 88 to 119. Other transactions with the Kingfisher Pension Scheme are detailed in note 28 of the consolidated financial statements.
199Kingfisher 2024/25 Annual Report and Accounts
Notes to the Company financial statements continued
14 Related undertakings of the Group
In accordance with Section 409 of the Companies Act 2006, a full list of related undertakings, the address of their registered office
and their country of incorporation as at 31 January 2025 is shown below. Changes to the list of related undertakings since the
year-end date are detailed in the footnotes below. All undertakings are indirectly owned by the Company unless otherwise stated.
All related subsidiary undertakings, unless otherwise noted, are consolidated in the Group’s financial statements, have only one
class of share in issue (being ordinary shares), and have all their shares held by companies within the Group, other than the
Company (Kingfisher plc).
Certain UK subsidiaries are intending to avail of the exemption from the requirements of the Companies Act 2006 (the Act) relating to
the audit of individual accounts by virtue of section 479A of the Act. Kingfisher plc will guarantee all outstanding liabilities that these
subsidiaries are subject to as at the financial year ended 31 January 2025 in accordance with section 479C of the Act. Refer to note
36 of the consolidated financial statements for more details, including the list of subsidiaries intending to avail of this exemption.
Wholly-owned subsidiary undertakings
ADSR-Real Estate S.A.S.
1
Halcyon Finance Limited
2
L’Immobiliere Castorama S.A.S.
13
Alcedo Finance Limited
2
Horizons 1000 S.A.S.
10
Martin Pecheur Holdings Limited
c, 22
B&Q (Retail) Guernsey Limited
3
KF10 S.A.S.
28
Melani 1 Sp. z o.o.
12
B&Q (Retail) Jersey Limited
4
KF11 S.A.S.
28
New England Paint Company Limited
2
B&Q Ireland Limited
6
KFL8 S.A.S.
1
Paddington Investment Ireland Limited
29
B&Q Limited
a, 5
KFS Sp. z o.o.
15
Screwfix Direct (Ireland) Limited
6
B&Q Properties Chesterfield Limited
5
Kingfisher Asia Limited
17
Screwfix Direct Limited
e, 8
B&Q Properties Farnborough Limited
5
Kingfisher Développement S.A.S.
1
SCREWFIX S.A.S.
1
B&Q Properties Investments Limited
20
Kingfisher France Limited
2
Screwfix Spares Limited
8
B&Q Properties Limited
5
Kingfisher Group Finance B.V.
26
SFD LTD
8
B&Q Properties New Malden Limited
5
Kingfisher Group Limited
2
Sheldon Euro Investments Limited
f, 2
B&Q Properties South Shields Limited
5
Kingfisher Holdings Limited
b, 2
Sheldon Holdings Limited
2
B&Q Properties Sutton-in-Ashfield Limited
5
Kingfisher Information Technology Services
(France) S.A.S.
1
Sheldon Poland Investments Limited
2
B&Q Properties Swindon Limited
5
Kingfisher Information Technology Services
(UK) Limited
2
Société Letranne S.C.I
10
B&Q Properties Witney Limited
5
Kingfisher Insurance Designated Activity
Company
19
SOCODI S.A.R.L.
1
B&Q Properties Wrexham Limited
5
Kingfisher International France Limited
c, 7
Trade Point Limited
5
Brico Depôt Portugal, S.A.
9
Kingfisher International Holdings Limited
2
Zeus Land Investments Limited
2
Brico Dépôt S.A.S.
10
Kingfisher International Products B.V.
18
Bricostore Romania S.A.
11
Kingfisher International Products France S.A.S.
1
Castim Sp. z o.o.
12
Kingfisher International Products Limited
2
Castorama Polska Sp. z o.o
12
Kingfisher Investissements S.A.S.
13
Castorama France S.A.S.
13
Kingfisher Marketplaces Limited
d,
2
Dickens Limited
5
Kingfisher Pension Trustee Limited
2
Eijsvogel Finance Limited
2
Kingfisher Properties Investments Limited
2
Euro Depot España SAU
14
Kingfisher Retail Media France S.A.S.
25
Euro Dépôt Immobilier S.A.S.
10
Kingfisher (Shanghai) Sourcing Consultancy
Co. Ltd
16
Geared Up Limited
8
Kingfisher Sourcing Eastern Europe Sp. z o.o.
12
Kingfisher TMB Limited
5
KSO Istanbul Sourcing Ev Geliştirme Ürünleri ve
Hizmetleri Ltd Sti
21
Other Information
200 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Related undertakings other than wholly-owned subsidiary undertakings
The undertakings denoted with an asterisk (*) are charitable entities/partnerships and do not have a share capital.
B&Q Foundation
5,
*
Fondation Brico Dépôt pour l'Habitat
24,
*
Fondation Castorama
24,
*
Fundatia Bricodepot
11,
*
Kingfisher Scottish Limited Partnership
g, 20, *
Koçtaş Yap Marketleri Ticaret A.Ş. (Turkey, 50%)
h, 23
Fundación Brico Depôt Iberia
14,
*
Fundacja Castorama
12,
*
The Screwfix Foundation
8,
*
UNIO S.A.S. (France, 50%)
i, 27
a. Kingfisher Investissements S.A.S. holds 45,663,000 Ordinary shares of £0.05 each and 678,420,375 Ordinary shares of £1 each; Kingfisher plc holds 1,000
Special Shares of £0.05 each, and 1,000 Special A Shares of £0.05 each – each representing 100% of the nominal value of each class of share. These
represent 100% of the total issued share capital.
b. The shares are held directly by Kingfisher plc.
c. Entity in process of liquidation as at 31 January 2025.
d. Kingfisher International Holdings Limited holds 200 Ordinary A shares, 100 Ordinary B shares, 5 Ordinary C Shares, 5 Ordinary D Shares and 10 Ordinary E
Shares – each of £1 and each representing 100% of the nominal value of each class of share. These represent 100% of the total issued share capital.
e. Kingfisher International Holdings Limited holds 4,083 Ordinary A shares of £1 each, 45,917 Ordinary C shares of £1 each and 4,591,700 Ordinary D Shares of
£0.0001 each – each representing 100% of the nominal value of each class of share. These represent 100% of the total issued share capital.
f. Entity dissolved on 18 February 2025.
g. Kingfisher Properties Investments Limited and Kingfisher Pension Trustee Limited are the limited partners; B&Q Properties Investments Limited is the
general partner.
h. Class of shares held - TRY100.00 Registered.
i. Class of shares held - EUR100.00 Ordinary.
Registered offices and country of incorporation:
1. Parc d’Activités, Templemars, 59175, France
2. 1 Paddington Square, London, England, W2 1GG, United Kingdom
3. Redwood House, St Julian’s Avenue, St Peter Port, GY1 1WA, Guernsey
4. 3rd Floor, 44 Esplanade, St Helier, JE4 9WG, Jersey
5. B&Q House, Chestnut Avenue, Chandlers Ford, Eastleigh, Hampshire, SO53 3LE, United Kingdom
6. 6th Floor, 2 Grand Canal Square, Dublin 2, D02 A342, Ireland
7. C/O Teneo Financial Advisory Limited, The Colmore Building, 20 Colmore Circus, Queensway, Birmingham, B4 6AT, United Kingdom
8. Trade House, Mead Avenue, Houndstone Business Park, Yeovil, Somerset, BA22 8RT, United Kingdom
9. Rua Elias García,Estrada Nacional 294, km 14, Freguesia de Rio de Mouro, Concelho de Sintra, Lisboa, Portugal
10. 30-32 Rue de la Tourelle, 91310 Longpont-sur-Orge, France
11. 1-3 Calea Giulesti, 2nd Floor, Bricostore Commercial Centre, District 6, Bucharest, Romania
12. ul. Krakowiaków 78, Warszawa, 02-255, Poland
13. Zone Industrielle, Templemars, 59175, France
14. C/la Selva, 10 Inblau Edificio A 1°, 08820 El Prat de Llobregat, Barcelona, Spain
15. ul. Wielicka 28, Kraków, 30-552, Poland
16. B&Q China, 4th Floor, B&Q Pudong Commercial Building, No. 393 Yin Xiao Road, Pudong New Area, Shanghai, 201204, China
17. 2/F, Koho, 73–75 Hung To Road, Kwun Tong, Hong Kong
18. Rapenburgerstraat 175 E, 1011 VM, Amsterdam, Netherlands
19. Willis Towers Watson House, Elm Park, Merrion Road, Dublin 4, D04 P231, Ireland
20. c/o Womble Bond Dickinson (UK) LLP, 2 Semple Street, Edinburgh, EH3 8BL, United Kingdom
21. Barbaros Mahallesi Mor Sümbül Sokak, Nidakule Blok No: 7/3, İçkap no: 127, Ataşehir/İstanbul, Turkey
22. Riverside Two, Sir John Rogerson’s Quay, Dublin 2, D02 KV60, Ireland
23. Tasdelen Mahallesi Sirri Celik Bulvari Oto Koc Blok No:9 Cekmekoy, Istanbul, Turkey
24. 40 Avenue Hoche, Paris, 75008, France
25. Route de l'Epinoy, Parc d'Activités, Templemars, 59175, France
26. Basisweg 10, 1043AP Amsterdam, Netherlands
27. 6, Passage Tenaille, Paris, 75014, France
28. Parc d'Activités, rue de l'Epinoy, Templemars, 59175, France
29. B. & Q. Warehouse, Liffey Valley Retail Park East, Ascail an Life, Dublin 22, Ireland
201Kingfisher 2024/25 Annual Report and Accounts
Group five year financial summary
£ millions
2020/21 2021/22 2022/23 2023/24 2024/25
Income statement
Sales
12,343
13,183
13,059
12,980
12,784
Retail profit
1,003
1,148
923
749
696
Central costs
(54)
(60)
(49)
(60)
(62)
Share of interest and tax of
joint ventures and associates (3)
(2)
(4)
(16)
(6)
Net finance costs before adjusting items
(160)
(137)
(112)
(105)
(100)
Adjusted pre-tax profit
786
949
758
568
528
Adjusting items (before tax)
(30)
58
(147)
(93)
(221)
Profit before taxation
756
1,007
611
475
307
Income tax expense (including adjusting items)
(164)
(164)
(140)
(130)
(122)
Profit for the year
592
843
471
345
185
Balance sheet
Goodwill and other intangible assets
2,747
2,754
2,779
2,766
2,624
Property, plant and equipment
, and investment property 3,095
3,111
3,235
3,233
3,139
Right-of-use assets
1,845
1,885
1,947
1,881
1,771
Investments in joint ventures and associates
20
17
30
19
29
Assets and liabilities (excluding net debt) held for sale
12
6
3
3
99
Other net current assets
1
105
367
931
844
800
Post-employment benefits
359
410
137
99
101
Other net non
-current liabilities
1
(218)
(200)
(125)
(125)
(204)
Capital employed
7,965
8,350
8,937
8,720
8,359
Equity shareholders’ funds
6,571
6,778
6,663
6,604
6,344
Net debt
1,394
1,572
2,274
2,116
2,015
Capital employed
7,965
8,350
8,937
8,720
8,359
Other financial data
Like-for-like sales growth
7.1%
9.9%
(2.1)%
(3.1)%
(1.7)%
Adjusted effective tax rate
23% 22% 22% 27%
28%
Basic earnings per share (pence)
28.1
40.3
23.8
18.2
10.1
Adjusted basic earnings per share (pence)
28.7
35.2
29.7
21.9
20.7
Ordinary dividend per share (pence)
8.25
12.40
12.40
12.40
12.40
Gross capital expenditure
2
281
397
449
363
317
Number of stores
3
1,386
1,474
1,572
1,638
1,681
1. Other net current assets and other net non-current liabilities reported above exclude any components of net debt.
2. Excluding business acquisitions.
3. Excluding joint ventures and associates.
Other Information
202 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Shareholder information
Financial calendar
Q1 25/26 trading update
1
28 May 2025
Annual General Meeting 23 June 2025
Half-year results
1
23 September 2025
Q3 25/26 trading update
1
25 November 2025
1. Dates are provisional and may be subject to change.
Annual General Meeting (AGM)
We consider the AGM to be an important event in our calendar
and a significant opportunity to engage with our shareholders.
The 2025 AGM will be held at No. 11, Cavendish Square, London
W1G 0AN on Monday 23 June 2025 at 10am.
Details of how to participate at the AGM are set out in the Notice
of AGM and on our website.
Company Secretary
Chloe Barry
Registered office
Kingfisher plc
1 Paddington Square,
London, England, W2 1GG
Telephone: +44 (0) 20 7372 8008
Website: www.kingfisher.com
Registered in England and Wales
Registered Number 01664812
Registrar
Computershare Investor Services PLC
The Pavilions
Bridgwater Road
Bristol
BS99 6ZZ
Telephone: +44 (0) 370 702 0129
Shareholders can also visit our online Investor Centre,
www.investorcentre.co.uk
Dividends
The company pays all cash dividends through direct payment
toshareholder bank accounts. Shareholders who have not yet
notified our Registrar of their preferred bank account details
should do so without delay. This does not affect those
shareholders who have subscribed for the Dividend
Reinvestment Plan.
The interim dividend for the financial year ended 31 January 2024
of 3.80p per ordinary share was paid on 15 November 2024.
The table below provides the payment information for the final
dividend of 8.60p per ordinary share, subject to shareholder
approval at the 2025 AGM.
Ex-dividend date 22 May 2025
Record date 23 May 2025
Final date for return of DRIP mandate forms/
currency elections
9 June 2025
Euro exchange rate notification 10 June 2025
Payment date and DRIP purchase 30 June 2025
American Depositary Receipts (ADR)
The company has a Sponsored Level 1 ADR programme in
theUS, which trades on the OTCQX Platform.
Each ADR represents two Kingfisher plc ordinary shares.
The company’s ADR programme is administered by Citibank, N.A.
ADR investor contact
If calling from within the USA: +1 877 248 4237 (+1 877 CITI ADR).
If calling from outside the USA: +1 781 575 4555
Email: citibank@shareholders-online.com
ADR broker contact
Telephone: +1 212 723 4483/+44 (0) 20 7500 2030
Email: michael.oleary@citi.com or michael.woods@citi.com
Share dealing facilities
Shareholders wishing to sell or purchase shares in the company
may do so through a bank or a stockbroker. Alternatively, please
go to www.computershare.com/dealing/uk for a range of dealing
services made available by Computershare.
ShareGift
If you would like to consider donating your shareholding to
thecharity ShareGift (Registered charity 1052686), further
information may be obtained by calling 020 7930 3737 or
from www.ShareGift.org.
203Kingfisher 2024/25 Annual Report and Accounts
Shareholder security
Details of any share dealing facilities that the company endorses
will be included in company mailings only. If you receive any
unsolicited investment advice, whether over the telephone,
through the post or by email, you should:
— Make sure you get the name of the person and organisation;
— Check that they are properly authorised by the FCA before
getting involved by visiting register.fca.org.uk/s/; and
— Report the matter to the FCA either by calling 0800 111 6768
or by completing an online form at www.fca.org.uk/
consumers/report-scam-us.
More detailed information on this or similar activity can be found on the
FCA website www.fca.org.uk/scamsmart.
Share price information
The company’s ordinary shares are listed on the London Stock
Exchange. Share price history and the latest share price are
available on the company’s website.
Electronic communications
Shareholders who have not yet elected to receive shareholder
documentation in electronic form can sign up by visiting
www.investorcentre.co.uk and registering their details.
Forward-looking statements
All statements in this Annual Report and Accounts, other than
historical facts, may be forward-looking statements (including
within the meaning of the safe harbour provisions of the United
States Private Securities Litigation Reform Act of 1995). Such
statements are therefore subject to inherent risks, assumptions
and uncertainties that could cause actual results to differ
materially from those expressed or implied, because they
relate to future events.
Forward-looking statements can be identified by the use of
relevant terminology including the words: ‘believes’, ‘estimates’,
‘anticipates’, ‘expects’, ‘intends’, ‘plans’, ‘goal’, ‘target’, ‘aim’, ‘may’,
‘will’, ‘would’, ‘could’, ‘should’, ‘project’, ‘continue’ or ‘forecast’,
in each case, their negative or other variations or comparable
terminology and include all matters that are not historical facts.
These forward-looking statements are based on currently
available information and our current assumptions,
expectations and projections about future events.
These forward-looking statements appear in a number of
places throughout this Annual Report and Accounts and include
statements which look forward in time or statements regarding
our intentions, beliefs or current expectations and those of our
officers, directors and employees concerning, among other
things, our results of operations, financial condition, changes
in tax rates, liquidity, prospects, growth strategies and the
businesses we operate.
Other factors that could cause actual results to differ materially
from those estimated by the forward-looking statements
include, but are not limited to, global economic business
conditions, global and regional trade conditions (including a
downturn in the retail or financial services industries), the
state of the housing and home improvement markets, share
repurchases and dividends, capital expenditure and capital
allocation, liquidity, prospects, growth andstrategies, litigation
or other proceedings to which we are subject, monetary and
interest rate policies, foreign currency exchange rates, equity
and property prices, the impact of competition, inflation and
deflation, changes to regulations, taxes and legislation, changes
to consumer saving and spending habits, acts of war or terrorism
worldwide, work stoppages, slowdowns or strikes, public health
crises, outbreaks of contagious disease or environmental
disaster, political volatility and our success inmanaging
these factors.
Consequently, our actual future financial condition,
performanceand results could differ materially from the
plans,goals and expectations set out in our forward-looking
statements. Reliance should not be placed on any forward-
looking statement. Nothing in this Annual Report and Accounts
oron the Kingfisher website should be construed as a profit
forecast or an invitation to deal in the securities of Kingfisher.
For further information regarding risks to Kingfisher’s business,
consult the Risks section on pages 60 to 65.
The forward-looking statements contained herein speak onlyas
of the date of this Annual Report and Accounts and thecompany
undertakes no obligation to publicly update anyforward-looking
statement, whether as a result of newinformation, future events
or otherwise, other than in accordance with its legal or
regulatory obligations (including under the UK Listing Rules
and the Disclosure Guidance and Transparency Rules of
the Financial Conduct Authority).
You are not to construe the content of this Annual Report and
Accounts as investment, legal or tax advice and you should make
your own evaluation of the company and the market. Ifyou are
in any doubt about the contents of this Annual Report and
Accounts or the action you should take, you should consult a
person authorised under the Financial Services and Markets
Act 2000 (as amended) (or if you are a person outside the UK,
otherwise duly qualified in your jurisdiction). Nothing in this
Annual Report and Accounts should be construed as either
anoffer or invitation to sell or any offering of securities or any
invitation or inducement to any person to underwrite, subscribe
for or otherwise acquire securities in any company within the
Group or an invitation or inducement to engage in investment
activity under section 21 of the Financial Services and Markets
Act 2000 (as amended) (or, otherwise under any other law,
regulation or exchange rules in any other applicable jurisdiction).
Shareholder information continued
Other Information
204 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
Glossary
Alternative Performance Measures (APMs)
In the reporting of financial information, the Directors have adopted various Alternative Performance Measures (APMs), also known
as non-GAAP measures, of historical or future financial performance, position or cash flows other than those defined or specified
under International Financial Reporting Standards (IFRS). These measures are not defined by IFRS and therefore may not be directly
comparable with other companies’ APMs, including those used by other retailers. APMs should be considered in addition to, and are
not intended to be a substitute for, or superior to, IFRS measurements.
APM
Closest equivalent
IFRS measure
Reconciling items
to IFRS measure Definition and purpose
Adjusted basic
earnings per
share (EPS)
Basic earnings
per share
A reconciliation of adjusted
basic earnings per share is
included in the Financial
Review and note 11 of the
consolidated financial
statements
Adjusted basic earnings per share represents profit after tax attributable to the
owners of the parent, before the impact of adjusting items (see definition below),
divided by the weighted average number of shares in issue during the period.
The exclusion of adjusting items helps provide an indication of the Group’s
ongoing business performance.
Adjusted EBITDA Profit before
taxation
A reconciliation of Adjusted
EBITDA is set out in the
Financial Review
Adjusted EBITDA (earnings before adjusting items, interest, tax, depreciation
and amortisation) is calculated as retail profit less central costs and before
depreciation and amortisation. This measure is widely used in calculating the
ratio of net debt to Adjusted EBITDA, and is used to reflect the Group’s leverage.
Adjusted effective
tax rate
Effective tax
rate
A reconciliation to the
statutory effective tax
rate is set out in the
Financial Review
The adjusted effective tax rate is calculated as continuing income tax expense
excluding tax adjustments in respect of prior years (including the impact of
changes in tax rates on deferred tax), significant one-off tax settlements and
provision charges/releases and the tax effects of adjusting items, divided by
continuing profit before taxation excluding adjusting items. Prior year tax items
represent income statement tax relating to underlying items originally arising in
prior years, including the impact of changes in tax rates on deferred tax. The
exclusion of items relating to prior years, and those not in the ordinary course
of business, helps provide an indication of the Group’s ongoing rate of tax.
Adjusted pre-tax
profit (PBT)
Profit before
taxation
A reconciliation of adjusted
PBT is set out in the
Financial Review
Adjusted PBT is used to report the performance of the business at a Group
level. This is stated before adjusting items. The exclusion of adjusting items
helps provide an indication of the Group’s ongoing business performance.
Adjusted post-tax
profit
Profit after tax A reconciliation of adjusted
post-tax profit is set out in
the Financial Review and
note 11 of the consolidated
financial statements
Adjusted post-tax profit is used to report the after-tax performance of the
business at a Group level. This is stated before adjusting items. The exclusion
of adjusting items helps provide an indication of the Group’s ongoing after-tax
business performance.
Adjusting items No direct
equivalent
Not applicable Adjusting items, which are presented separately within their relevant income
statement category, include items which by virtue of their size and/or nature,
do not reflect the Group’s ongoing trading performance. Adjusting items may
include, but are not limited to: non-trading items included in operating profit such
as profits and losses on the disposal, closure, exit or impairment of subsidiaries,
joint ventures, associates and investments which do not form part of the Group’s
ongoing trading activities; the costs of significant restructuring and incremental
acquisition integration costs; profits and losses on the exit of properties,
impairments of goodwill and significant impairments (or impairment reversals) of
other non-current assets; prior year tax items (including the impact of changes
in tax rates on deferred tax), significant one-off tax settlements and provision
charges/releases and the tax effects of other adjusting items; financing fair
value remeasurements i.e., changes in the fair value of financing derivatives,
excluding interest accruals, offset by fair value adjustments to the carrying
amount of borrowings and other hedged items under fair value (or non-
designated) hedge relationships. Financing derivatives are those that
relate to hedged items of a financing nature.
‘Big-ticket’
category sales±
No direct
equivalent
Not applicable ‘Big-ticket’ category sales comprise the sales from our kitchen, bathroom &
storage products. It is used as a measure of performance of our relatively
higher-value products.
Central costs No direct
equivalent
Not applicable Central costs principally comprise the costs of the Group’s head office before
adjusting items. This helps provide an indication of the Group’s ongoing head
office costs.
Constant currency No direct
equivalent
Not applicable Constant currency changes in total sales, LFL sales, gross profit, gross margin %,
retail profit, retail profit margin % and operating costs reflect the year-on-year
movements after translating the prior year comparatives at the current year’s
average exchange rates. These are presented to eliminate the effects of
exchange rate fluctuations on the reported results.
205Kingfisher 2024/25 Annual Report and Accounts
APM
Closest equivalent
IFRS measure
Reconciling items
to IFRS measure Definition and purpose
Core category
sales±
No direct
equivalent
Not applicable Core sales include the sales from non-seasonal products across all our
categories, other than ‘big ticket’ sales (i.e., kitchen, bathroom & storage).
It is used as a measure of our non-seasonal related performance, which
is the majority of Group sales.
Dividend cover No direct
equivalent
Not applicable Dividend cover represents the ratio of earnings to dividends. It is calculated as
adjusted basic earnings per share divided by the total (full year) dividend per
share. It is used as an indication of how sustainable dividend payments are.
E-commerce sales
penetration %
No direct
equivalent
Refer to definition E-commerce sales penetration % represent total e-commerce sales as a
percentage of sales. For the purpose of this calculation only, sales are adjusted
to replace marketplace net sales with marketplace gross sales. It is used to track
the success of our e-commerce strategy.
First-party
e-commerce sales
No direct
equivalent
Refer to definition First-party e-commerce sales are total first-party sales (excluding VAT)
derived from online transactions, including click & collect (C&C). This includes
sales transacted on any device, however not sales through a call centre.
Sales (and related commissions/fees) from products supplied by third-party
e-commerce marketplace vendors are excluded. It is used to measure the
performance of our first-party e-commerce business across the Group.
Total
e-commerce sales
No direct
equivalent
Refer to definition Total e-commerce sales are first-party e-commerce sales plus marketplace
gross sales. References to digital or e-commerce sales growth relates to
growth in constant currency. It is used to measure the performance of all
e-commerce business (first-party and third-party) across the Group.
Free cash flow Net cash flows
from operating
activities
A reconciliation of free
cash flow is set out in
the Financial Review
Free cash flow represents the cash generated from operations (excluding
adjusting items) less the amount spent on interest, tax and capital expenditure
during the year (excluding asset disposals). This provides a measure of how
much cash the business generates that can be used for expansion, capital
returns and other purposes.
Gross margin % No direct
equivalent
Refer to definition Gross profit represents sales from the supply of home improvement products
and services (excluding VAT), less the associated cost of those sales. Gross
margin % represents gross profit as a percentage of sales. It is a measure of
operating performance.
LFL sales Sales Refer to definition LFL (like-for-like) sales growth represents the constant currency, year-on-year
sales growth for stores that have been open for more than one year, as well as
other revenue streams which have more than one year of comparative sales (e.g.,
marketplace net sales). It is a measure to reflect the Group’s performance on a
comparable basis. Non-LFL sales represent the difference between total sales
and LFL sales, principally comprising sales for stores open for less than one year.
Marketplace gross
merchandise value
(GMV)
No direct
equivalent
Refer to definition Marketplace GMV is the total transaction value (including VAT) from the sale of
products supplied by third-party e-commerce marketplace vendors. It is used
to measure the performance of our e-commerce marketplace, and is the basis
on which our commissions from third-party vendors are determined.
Marketplace
gross sales
No direct
equivalent
Refer to definition Marketplace gross sales is the transaction value (excluding VAT) from the sale of
products supplied by third-party e-commerce marketplace vendors. Returned
and cancelled orders are excluded. It is used to measure the performance of
our e-commerce marketplace.
Marketplace
net sales
No direct
equivalent
Refer to definition Marketplace net sales are commissions (excluding VAT) earned on e-commerce
marketplace transactions, together with other service fees. This is included
within sales. Commissions are determined based on GMV. It is used to measure
the performance of our e-commerce marketplace.
Marketplace
participation %
No direct
equivalent
Refer to definition Marketplace participation % represents marketplace gross sales as a
percentage of total e-commerce sales. It is used to track the success of
our marketplace strategy and performance.
Net debt No direct
equivalent
A reconciliation of this
measure is provided in
note 33 of the consolidated
financial statements
Net debt comprises lease liabilities, borrowings and financing derivatives
(excluding accrued interest), less cash and cash equivalents and short-term
deposits, including such balances classified as held for sale.
Net cash flow Net (decrease)/
increase in
cash and cash
equivalents and
bank overdrafts
A reconciliation of net
cash flow is set out in the
Financial Review and in note
33 of the consolidated
financial statements
Net cash flow is a measure to reflect the total movement in the net debt balance
during the year excluding the movement in lease liabilities, exchange differences
and other non-cash movements.
Operating costs No direct
equivalent
Not applicable Operating costs represent gross profit less retail profit. This is the Group’s
operating cost measure used to report the performance of our retail businesses.
Glossary continued
Other Information
206 Kingfisher 2024/25 Annual Report and Accounts
Governance Financial StatementsStrategic Report
APM
Closest equivalent
IFRS measure
Reconciling items
to IFRS measure Definition and purpose
Own exclusive
brands (OEB)
sales
No direct
equivalent
Refer to definition OEB refers to our portfolio of own exclusive brands across seven core
categories – surfaces & décor, tools & hardware, bathroom & storage, kitchen,
EPHC (electricals, plumbing, heating & cooling), building & joinery, and outdoor.
OEB sales are sales of own exclusive brand products. It is used to measure the
performance of OEB across the Group.
Retail profit Profit before
taxation
A reconciliation of Group
retail profit to profit before
taxation is set out in the
Financial Review and note 5
of the consolidated financial
statements. There is no
statutory equivalent to retail
profit at a retail banner level
Retail profit is defined as continuing profit before tax before central costs, the
Group’s share of interest and tax of JVs and associates, adjusting items and net
finance costs. This is the Group’s operating profit measure used to report the
performance of our retail businesses.
Retail profit
margin %
No direct
equivalent
Refer to definition Retail profit is the Group’s operating profit measure used to report the
performance of our retail businesses and is separately defined above. Retail
profit margin % represents retail profit as a percentage of sales. It is a measure
of operating performance.
ROCE No direct
equivalent
Refer to definition ROCE (return on capital employed) is the post-tax retail profit less central
costs, excluding adjusting items, divided by capital employed excluding historic
goodwill, net debt and adjusting restructuring provision. The measure provides
an indication of the ongoing returns from the capital invested in the business.
Capital employed is calculated as a two-point average. The calculation excludes
disposed businesses.
Same-store
net inventory
Inventory Refer to definition Same-store net inventory movement represents the constant currency,
year-on-year change in net inventory before the impact of store openings
and closures. It is a measure to reflect the Group’s inventory management
on a comparable basis.
Seasonal
category sales
No direct
equivalent
Refer to definition Seasonal category sales include the sales from certain products within our
outdoor, electricals, plumbing, heating & cooling (EPHC) and surfaces & décor
categories. It is used as a measure of the performance of our sales that are
subject to the season we are in, or prevailing weather conditions.
± Indicates the inclusion of new APMs during FY 24/25. The new APMs in the table above have been introduced to track the individual performance of our
‘big-ticket’ and core category sales.
The Group no longer reports adjusted pre-tax profit margin % as one of its Alternative Performance Measures, with the retail profit margin % and absolute
adjusted pre-tax profit measures judged to provide more relevant information to readers.
Other definitions
‘Do It Yourself’ (DIY) sales include products that facilitate self-undertaken home improvement projects and tasks, including paint,
lighting, tools and hardware, and garden maintenance.
‘Do It For Me’ (DIFM) sales include products and services used in home improvement projects and tasks that predominantly require
a tradesperson to undertake, including kitchens, bathrooms, tiling, wardrobes, windows and doors, certain electrical and plumbing
activities, and installation services.
France consists of Castorama France and Brico Dépôt France.
GNFR (Goods Not For Resale) covers the procurement of all goods and services a retailer consumes (including ocean freight,
energy, media buying, cleaning, and security).
Iberia consists of Brico Dépôt Spain and Brico Dépôt Portugal.
Other International consists of Iberia, Romania, ‘Screwfix France & Other’, and Turkey (Koçtaş JV). ‘Screwfix France & Other’ consists of the
consolidated results of Screwfix France, NeedHelp, and results from franchise and wholesale agreements. On 18 July 2024, we completed a
divestment of our c. 80% equity interest in NeedHelp. On 18 December 2024, we announced the sale of Romania which is expected to
complete in H1 25/26. The Romanian business is classified as ‘held for sale’ in the Group’s balance sheet as of 31 January 2025.
Poland consists of Castorama Poland.
SKU (Stock Keeping Unit) is defined as the number of individual variants of products sold or remaining in stock. It is a distinct type of
item for sale, such as a product and all attributes associated with the item type that distinguish it from others. These attributes could
include, but are not limited to, manufacturer, description, material, size, colour, packaging and warranty terms.
UK & Ireland consists of B&Q in the United Kingdom and Republic of Ireland, and Screwfix in the United Kingdom and Republic of Ireland.
207Kingfisher 2024/25 Annual Report and Accounts
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Kingfisher plc
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London
W2 1GG
+44 (0)20 7372 8008
www.kingfisher.com